Gold has been in a frenzy today, which led to massive roller coaster moves up and down. Given the tensions on the war still persist, the Gold has been bullish since, reaching its previous highs at 2070 and then dumping back towards the 2020 level the late NYSE session. What we will be looking at is to short the gold at the region around 2044-2050, which is a minor H1 resistance, which was prviously support. Market tapped the strong resistance level of weekly and monthly and continued its dip after tapping it. 

There is no retracement element in this current technical factors. Therefore, we will continue without retracement implication.

Market has formed a scissor pattern with a trendline as a resistance and a trendline as a support. The resistance trendline has been tapped twice and the support trendline is still below the current price action. We are anticipating the dip towards the support trendline as our potential take profits.

Both the EMA 50 and EMA 200 are in a bullish sentiment, with a bullish death cross. This breakout buy for the EMA has taken place and the retest is due. This retest would be our target profit. We may also see a further continuation down, breaking the EMA's if the war situation is sorted out.

RSI and CCI is in an over bought region, forming divergence. Both the oscillators have formed a bearish divergence, which solidies the strength for the market to dip down further. At the resistance level, once we get the right price action for sells, the divergence would already be working out for short positions we are going to take.

Frenzy on Gold

Mar 08 2022

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