Gold has formed a double top and has now started to decline towards the lower side as earlier, it had made a lower low and was unable to create a higher high. Due to this, we are looking at the short position on the gold being the another bearish impulse move towards the lower side. 

The ascending trendline has slightly broken out for sells and needs validation. Once validated with price action, there is a chance of a steep breakout sell and downtrend continuation. 

The retracement level of 75 and 78.6% has created a resistance zone, which has the potential for confluence with the structure for a bearish down run.

EMA 50 is still bullish. Therefore, we can only look for the retest as the target of our short positions.

RSI is at 46. This needs to neutralize back at the 50 level where we can take our entry positions once the candles have formed a bearish pinbar.

It should be noted that the gold has tapped the retracement level of the weekly level.

Gold on the verge of bearish

Dec 12 2022