Gold has broken a key support level which was priced at 1783, and has now turned into a resistance. From this resistance, the market has the potential to continue dropping down. The market has formed a new low. Now, it has to form a new high. Once it has formed a new high, we will take a short position.

The ascending trendline is on the verge of being broken out, as the candlesticks approach the trendline. The resistance trendline has the effect to bring down the gold, as it formed the bearish divergence.

The retracement level of 50% is in confluence with the resistance level. This retracement level is a decent confluence. 

EMA 50 is in a bullish direction with the candlesticks being above the EMA. This EMA 50 retest can be a target for the move down. 

RSI is at 42. We need to neutralize the RSI at the 50, which will be in confluence with other technical parameters and has the effect to move down towards the support level. 

Gold retest and drop

Dec 05 2022

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