So what is basically happening on gold is that, it is in a bearish trend and continuing its breakout and retest phenomenon. Right now, market has broken the previous low of price 1728-1733. This low after being broken, is retesting the market at the support turn resistance level. Once the market forms a bearish candle or price action, we will take another short position expecting the market to make another leg bearish breaking the upcoming formation of previous low.

There is no trendline indication in this given scenario.

The retracement area stands at 1730 with the level of 61.8%. This retracement area is in confluence with the resistance level. 

EMA 50 is super bearish with a steep leaning downwards curve. This means, market is going to continue moving further bearish.

RSI is at 33 which means its already in a bearish momentum. This momentum is near about the over sold region and the market has the potential to tap the the neutralized level in order for us to take another short position. This neutralized level will have two confluence points with our short setup. Having retracement and RSI neutralized levels will form a decent confluence at the region for shorts.

Gold break and retest

Aug 29 2022