Gold is bearish on higher timeframes as the structure still remains bearish. Last week, there was a corrective move on gold which pushed it towards the price of 1871. This level was rejected and market started to drop down. Also, the CPI correction triggered the trend towards the bearish side as the data was strong.  At the current moment, we have a broken support which has now turned into a resistance. This resistance is priced at 1840. We will be looking to short the market at this price. On a longer picture, we still anticipate the gold on a lower side. We will continue looking for shorts until the market shows us bullish direction on the break of the structure.

The ascending trendline has been broken out for sells inducing the breakout sells. This breakout sell needs to be retraced at the resistance level. This point will be our short selling price.

There is no retracement factor associated with the resistance level with this setup. We need to assess the fact without retracement at this given resistance level.

Both the EMA's are bearish with a bearish death cross. The EMA 200 was broken out for sells after the fakeout towards the upside. After the breakout sell, EMA 50 was also broken out. Once market retraces back, we may see a correction towards the tapping the resistance level in confluence with the EMA 50. Therefore, giving us another factor to short.

RSI is at 34 and CCI is at -140. This indicates that both the oscillators are in an extended over sold condition. This needs to be neaturalized as for us to take the shorts. Shorting right now becomes risky as the parameters are at the sold conditions which need correction. Once the neutralized levels are tapped and the market has other technical factors aligned, we will take the short position.

Gold freefall from 1840

Jun 13 2022

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