Gold is in a downtrend on higher time frames and has the potential for fall further down. We are looking to short Gold at the 1775 level. The reason for this short is the  downtrend and the market forming lower highs and lower low. Once another lower high is confirmed at the resistance level, we have a potential for the market to fall downwards further more. The break and retest area is set at this level.

The ascending trendline has induced the breakout sell and the H4 candle has broken it out with the magnitude of the force. The candle closure on the H4 will have the abilitly to retrace and further continue moving down.

Th 75% retracement area is in confluence with the resistance level. This confluence along with the preceeding breakout sell will give us a good short opportunity.

EMA 50 is still bullish. After taking this short position, we can have our take profit set at the EMA 50 retest. There is a high probability for the market to break the EMA 50. If its broken out for sells, we will have a further confirmation for the market.

RSI is at 40. This is already a bearish territory. On the retest, we may see the RSI settling at the 50 level of the oscillator, ultimately having the potential heading down towards the over sold area.

Gold continuing shorts

Aug 17 2022