Gold dipped rapidly from the previous highs of 1992. These highs held a high voltage of short orders which got triggered and market slipped downwards right away. At the price level of 1965, there is a swing resistance which holds another order block for the short orders. On this time frame of H4, market has formed lower lows and lower highs. Above the resistance, if the H4 candle is closed, we need to get out of the market after taking the stop.

Two of the ascending trendlines have been broken out for sells. This means, after the breakout sells, we wait for the retracement which is expected at the price of 1965 at the resistance. After this retracement has been confirmed, we can look at the lower time frame for another trendline breakout sell for added confirmation and then take a sell.

The 61.8% retracement level aligns with the resistance level and has a solid rejection area at this point. We need to see how the price behaves at this area. If we see a bearish confirmation of engulfing or a pinbar, then it would be a solid go.

EMA 50 was broken out for sells and is going to be retesting at the resistance level. EMA 200 is still below the market which indicates the persistance of the bullish momentum. But the EMA 50 depicts otherwise and we will go with the confluence of the EMA 50 as other parameters are aligned.

Both the oscillators are in a bearish region below their neutralized levels and have the potential to continue moving down towards the over sold region. We have a window towards the over sold region for shorts from the resistance level. 

If market breaks the resistance level we have marked, we will take the loss and get out of the market.

Looking to short GOLD

Apr 20 2022

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