Gold has been in a roller coaster ride lately. The higher time frames are still bullish but daily time frame is indicating a bearish structure as the market is still stalling at the resistance level. This resistance level will make and pave its way towards the bearish side forming a lower low and lower high. We can easily target the support at 1942 once market reached our point of resistance at 1979.

The resistant trendline is due to be tested by the price action. Once it does, we will have a confluence of it with the resistance level. This will be our premium level to take a short.

The retracement level of 78.6% is in confluence with the trendline and the resistance as well. 

EMA 50 is bullish right now but as the market flips towards the bearish side, the EMA 50 will become bearish and move on top of the EMA 50.

RSI is at 53. We need to see the RSI dwell towards the over sold region, from where a bearish divergence can be formed for the market to align with all the technical factors.

Shorting gold at 1979

Jul 31 2023