Gold on a higher time frame is bearish and we need to evaluate a decent setup for the short position. The best opportunity we see for shorts is the area of 1730 where we have a resistance and another double top. We will wait for the market to form a bearish candle at the level of the resistance in order for market to continue moving down. 

The ascending trendline is due for the breakout sell. The market would resume the bearish momenutm after the validation of breakout sell. 

The retracement area is in confluence with the resistance level where the price is at 1730. This price point has multiple factors to confluence for the market. The retracement level is 61.8% at the resistance.

The EMA 50 is still bearish and might tap at the resistance with the confluence of other multiple factors. The curve is steep bearish which indicates the strong bearish momentum.

The RSI is at 59. This means market is bullish. Two scenarios in this case. Either market hops towards the over bought region and forms a bearish divergence or market head towards the lower side below 50, in order to depict the bearish region. 

Gold forming double tops for shorts

Sep 12 2022