Gold had been in a bullish trend since long. But all trends do no last forever and always retrace to grab liquidity. Market tapped the previous high at the 2040 and started declining from there onwards. Now as the market is coming down, we analyze that it has a potential to continue further down towards the 1980 region. Market has formed a minor resistance and we will take a short position from there.l

The ascending trendline has broken out for sells and has been validated by the candles. With this confirmation, another lower time frame confirmation of trendline breakout sell is almost on the way which if pierced, will give us an added confirmation for the sell side.

There is no retracement at this setup as the market is rejecting the resistance area below the retracement.

EMA 50 is bearish now, with a flat curve. The curve if steeped downwards, will give the traders a bearish sentiment. We do not think that an EMA 50 retest will occur.

RSI is at 46. It needs to be bearish, which it is, and retest the neutralized level at 50 to align with our chart technicals.

Shorting gold till 1980?

May 15 2023