Gold is in a corrective move and has the potential to continue moving down further more. In this regard, we will wait for the market to tap the 61.8% retracement level which is priced at 1826. From there, we will see a bearish price action for the market to continue moving down. It should be noted that the bullish structure is still intact as it hasn't broken the upside move of the higher highs and higher lows for the third time, which continues the bullish move.

The resistance trendline has been tapped the second time. But, it needs to tap the price mentioned earlier in order for the trendline to pusht the prices down.

The retracement level is in confluence with the resistance level, which is priced at 1686. This retracement is the daily retracement.

The EMA 50 is still bullish. The candles need to break it towards the lower side. The EMA 50 has the target to move towards the retest of the EMA 50.

RSI is at 65. This is near the over bough region. The overbought region is at the level of 75. Once market enters this zone, we will see how the market reacts and how it can form a divergence and continue moving down, in aligned to other technical factors.

Gold shorts from retracement of 61.8%

Nov 07 2022