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 price for shorts is the resistance which was previously the support. Hence, we are also looking at the break and retest of the market. Once this happens, our price point is at 1760.

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. Another impending ascending trendline is in formation and is due for the breakout sell.

The retracement level for this short setup is set at the level of 61.8%. 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. We are getting closer towards the retest of the EMA 50. 

RSI is at the 52 level, which is the bullish region. Although the momentum for the gold is still short. The oscillator still has space to fall into the over sold region. We currently do have the window downwards towards the over sold levels.

Hitting a stop on gold, another short

Aug 24 2022