Gold has been in a bullish trend on weekly and monthly. On the daily, it retraced heavily towards the support level of 1937. Market broke the previous resistance and is now testing it at the support level, priced at 1940. We will be taking a long position here as gold formed a strong bullish engulfing candle earlier which portrays the bullish sentiment. The sentiment is bearish at the moment but we are trying to take the longs on anticipation of a bounce back.

The descending trendline is on the verge of breaking out from the price action. Another lower trendline has already broken the trendline for the breakout buys. It has been validated as well.

There is no retracement level in this setup.

EMA 50 is bearish right now. We can utilize this EMA 50 as a profit target of our long positions.

RSI is at 39. It needs to dwell further into the over sold region for the purpose of aligning with the technical factors and then going up.

Still bullish on Gold

May 29 2023