Gold has broken the previous support which has now turned resistance. Market is now at this level of the resistance from where the market has tht potential to move down towards the previous support. Market is forming a bearish price action right now. Due to holidays, the volume is lower than what it normally is.

The ascending trendline has been broken out for sells. The lower timeframe breakout sells are also on the verge of breakout sells. Once it happens, we will have a patterned continuation bearish.

The retracement level of 61.8% is in confluence with the resistance level. 

EMA 50 is still bullish but the sentiment of the downtrend has the potential to break it past the ema 50. Our first profit target can be the retest of the EMA 50.

RSI is at 57. Market needs to tap the over bought region and align itself with the other technical parameters. On the other hand, market can move below the 50 region to continue its bearish run.

Gold on a retracement

Dec 27 2022