Gold has been in a bearish trend with the structure of lower lows and lower highs. The market is bearish on higher time frames but needs to retrace in order to continue going down. The market is currently tapping the resistance level of 1935. This is the level of the sell once the market starts to print bearish price action.

The descending trendline has broken out for sells and the ascending trendline is already looking to break down. There is no bearish confirmation until the market breaks the ascending trendline.

The retracement level of 78.6% is in confluence with the resistance level. Therefore, a higher possibility for the market to continue moving down.

EMA 50 is bullish. It needs to retest or break in order to continue moving down. Our bearish positions can also be up to the retest of the EMA 50.

RSI is at 68. It needs to hop over towards the over bought region where a bearish divergence can be formed and aligned with the technical parameters.

Gold shorts from 1935

Aug 29 2023