Gold has been in a rush hold since the FOMC increased its rate. After the market absorbed the news, the trend continued towards the bearish side. In the current situation, the gold is still in a bearish momentum, forming lower lows and lower highs. It was unable to break its previous lower high which makes it appalling for the market to continue its journey bearish. Apart from this, higher timeframes also confluence with the idea of the bearish pressure sustaining. Market bounced back down from the resistance level of 1835, which was a strong resistance. Right now, at the 1830, we have a support which needs to be breached in order for the market to continue down. We need another retest higher for the market to enter our short positions. We can also say, head and shoulders pattern has been formed on gold.

On H4, ascending trendline is on the verge of being breached. The reason we anticipate this breach is due to the fact of the bearish pressure previously being mounted which has formed strong bearish candles. 

The golden retracement area of 75-78.6% resides slightly below the resistance level. This level is the go short level for us where we will take a short position.

EMA 50 is bearish whereas EMA 200 is still due a retest, which is on the support level. This retest may either push the gold back up or might breach it for a further push down. We will see how market reacts to this retest. 

Both the oscillators are in a bearish region, with a little window towards the over sold region. In order to sell at a good level, we need the oscillators at the neutralized levels. RSI is at 35 and CCI at -235. This gives us less room for the short position. We will have to wait for the retracement in order to hop on the short positions.

Shorting gold from daily resistance at 1960

Mar 28 2022

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