Market tapped the solid resistance area which is also a supply zone where there are a lot of pending short orders. This resistance is priced at 1975. The trend is still bullish on gold but the shorts we are seeking, is going to be a counter trend trade. The resistance has the potential to drop the gold further down towards the 1940 level. This is where, we will be looking to book our profits.

We have two trendlines in play right now. The resistance trendline which has been tapped by the market and then we have a support trendline which is still below the current market prices. The support trendline needs to breakout sell in order for this counter trend to turn into a sell trend. That being said, we can also partially book profits at the trendline touch.

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

Both EMA 50 and 200 are bullish with a bullish death cross. Market needs to retest either of the EMA in order to fulfill the orders. This EMA retest can be our profit target for the short position.

RSI and CCI, both are in an over bought region and have formed a bearish divergence. This bearish divergence will push the market down towards the support level where we have a profit target. If either of the oscillator is neutralized at the 50 or 0 level, we can book profits from there.

Attempting shorts on gold

Apr 12 2022

Stop Loss -1.01%

Holding time 5d4hr

1970.40

Entry price

1990.38

Stop loss price

1