Gold has been in a bearish trend since last week. We see gold forming lower lows and lower highs and along with this, market has broken the support level and the current retest is occurring in the given point in time. We see the profit target at the support level priced at 1705. This level will play as a reactionary level from where we might see a retracement. 

The ascending trendline has been broken out for sells earlier and is continuing moving down. The impending trendline is due to break the prices for a further breakout sell. Once this is done, market will drop further more. 

The retracement level for this short setup is set at the level of 50%. The market has the potential to continue moving past the 0 level. 

The EMA 50 has also turned bearish with the market being above the market prices. With this, we see a massive move if the market is retested. Given the curve is steep, the continuation is linear.

RSI is at the 34 level which indicates the bearish momentum already. The oscillator still has space to fall into the over sold region. We currently do have the window downwards towards the over sold levels. 

Gold still bearish

Aug 23 2022