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. This retracement level is of the weekly timeframe and will have an impact on the market.

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

RSI is at 64. We can assume or wait for the market to either drive up to the over bough region or, fall back down below the 50 region in order to induce our sells for the market.

It should be noted that the gold has tapped the retracement level of the weekly level and we have the FOMC rates tonight.

Weekly bearish retracement of 75% on gold

Dec 14 2022