- March 2, 2021
- Posted by: cabana-admin
- Category: forex trading
General overview: Open interest in the gold futures market shrunk in previous days more. More downfalls can be expected in the market. The metal decreases its value continually and headed towards a downfall in the market. The gold prices extend towards the downside momentum this time. Logically market sets its mindset towards the bearish side and bears are showing their strong potential in the market. From last pervious weeks, we can see that major downfall gold has given to us and also gives huge profit to the sellers. Gold metal shows its diminishing value this time and headed towards the low side volatility.
Technical analysis: From the technical point of view we can say that market creates a strong bearish side this time. On an intraday basis, the market creates the sell-in market. We can see the rounding top has been formed in the market and after the breakout, the market starts falling and still in a range-bound position. On the 4 hourly charts, it’s making downward swings in the chart and create less volatility in the market. A deeper pullback can be expected in the market that could be extended near 1670 level. For the positional traders, we can also say that potential bearish candlesticks are formed so the more confirmed can be analyzed. The major and minor EMA and SMA lines are above the price pattern and create the sell-side in the market. The indicator is also supporting the price pattern for the sell-side in the market. Macd is also in a range-bound position but below zero lines as sell position are formed. The support will be 1699 followed by 1679 and resistance will be 1639 followed by 1650.
Trade idea: Our traders will set towards the sell side around 1720 and target will be 1705-1695 and stop loss will be 1745.
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