Gold is in a bearish trend and has the potential to continue moving downwards towards the previous low. The market has formed higher highs and higher lows on H4. On higher time frames, market is still bearish. We just need another retest of the resistance level on H4 to hop on to the short sells. 

The ascending trendline is formed and is below the market prices. It has the potential to break this and induce breakout sells. With this, we will have a further confirmation on the market element.

The retracement level of 75% is in confluence with the resistance level. 

EMA 50 is bullish. With the structure being formed bearish, we have to deduce the fact that EMA 50 has the tendency to breakout sell from the EMA. 

RSI is at 64, which is just 10 points below the over bought region. We need the market to slide into this region and form a bearish divergence. With this technical confluence, we will have a shorting opportunity.

Gold shorts in trend

Oct 05 2022