GOLD has been ranging since the last few days, giving us a bearish signal as the formation has been lower low and lower high on the lower time frames. If we head to the higher time frames, we see that a strong bearish engulfing has formed, heading down from the monthly resistance level. This gives us an edge to ascertain the market momentum towards the downside. Once the support breaks, we have a similar target of 400 pips towards the down side. The support has weakened as it has been tested many times.

The descending trendline has been rejected by the price action as it continues to move down after the retest. On the other hand, we have a support/ascending trendline formed, awaiting the breakout sell from the trendline. 

There is no retracement indication in this setup.

The EMA 50 is bearish as well and is almost rejecting the EMA 50. The steep downwards slanted EMA 50 indicates that the market can further move down.

RSI is at 45. We need to wait for it to head to the neautralized levels of 50, and align with the charts for the further impulse downwards.

Support at the verge of breaking

May 01 2023