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.  At the current moment, we have a broken support which has now turned into a resistance. This resistance is priced at 1838. 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. We will be looking to enter on the impulse of this breakout sell as we anticipate the pressure on the bearish side building up. 

There is a minor retracement at the resistance level which was support earlier. This retracement will be at 61.8%. Although market has already tapped the retracement level and is heading down, we are going to be entering on the impulse move of the breakout sells.

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.  Now this EMA 50 has been retested at the resistance level which means we have a confluence of multiple factors at the resistance level. 

RSI is at 48 and CCI is at -32. This indicates that both the oscillators are in a bearish region. The window towards the downside has more scalability towards the over extended sell side. We need to be vary for this condition being met.

Gold shorts continuing

Jun 21 2022

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