Gold has been in a bearish trend with the formation of lower lows and lower highs. With this, we are looking to take a short on gold at the price of 1942, which is a solid resistance level and we can ride it down all the way to th 1920 if market drop as much. The support level has been tested several times, therefore, weakening it for the breakout sell.

The descending trendline will retest the price action at the resistance. If not, it will breakout and maybe realize later it would be a fake out.

There is 61.8% level retracement which is potentially in confluence with the resistance and the trendline level. We will continue to monitor what happens at the resistance level.

The EMA 50 is on the verge of retesting the price action at the resistance level, along with the trendline retest, which gives us a strong confluence.

RSI is at 45. It needs to neutralize at the level of 50 to align with the technical structure of the price action.

Betting shorts on gold

Aug 07 2023