Gold is bearish on higher timeframes as the structure still remains bearish. The level of 1835 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 1835. We will be looking to short the market at this price. Based on the structure, we have a typical break and retest setup. 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. After the breakout sell, market retested the trendline and is now heading downwards continuing the trend. The descending trendline has been retested by the price action, and was wicked with the rejection.

The retracement area of 75-78.6% was retested at the level where there was a trendline rejection. At this level, we see a massive wicking which also proved to be a stop hunt. With that fact, market started to continue its bearish leg. With the descend, market also broke the lower support level, which now has turned into a resistance.

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 with the retracement level and trendline retest combined, which means we have a confluence of multiple factors at the resistance level.

RSI is at 40 and CCI is at -88. 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 stalling

Jun 24 2022

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