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 1704 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 has broken out for sells and has validated the breakout sell. The breakout and retest of the resistance level needs to be levied for the shorts. 

There is no retracement area as the bearish pressure is still in power mode and the retest needs to develop a bearish candlestick in order to continue down movement.

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. We might not see a retest as the bearish pressure persists.

The RSI is at 42. This means market is bearish. 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.

Continuation on Gold shorts

Sep 14 2022

Take Profit +1.51%

Holding time 1d3hr

1703.75

Entry price

1678.07

Take profit price