Market had a rapid mark up rally on the news this week. The inflation is being curbed by the increase of the interest rate of 2.5%. Market is still bearish on the weekly, monthly time frames. On the daily time frame, we will see what the market forms on the basis of the bearish correction. 

Market on H4 is forming higher highs and higher lows which is a bullish trend structure. But, the resistance market has stalled form is at the price of 1765. This is the level from where the makret may take a bump down and break the support structure at the price of 1752. We will be cashing this move down in ancitipation that market is going to slide.

There is an ascending trendline formed which has price action above the trendline. The other trendline is tapping the market and being rejected. The market is forming a bearish penant pattern. If the trendline induces breakout sells, we will see a major decline downwards.

The golden retracement level is in confluence with the resistance level. This level will have a corrective or continued effect on the market prices to continue dropping down. 

EMA 50 has just broken out for buys and the market needs to retest this EMA 50 for the continuation up. If this is a fakeout, we will have the market to drop down below the EMA 50. And after the breakout sell, the retest will provide us an additional confirmation.

RSI is currently at the 73. This is the over bought situation where the market has the potential to continue moving down towards the neutralized level. This level will act as a profit taking level for our short positions. 

Gold is still bearish

Jul 29 2022

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