Gold Touches Target And Retest of The Support Still Intact

Gold prices faced negative pressure as we expected during the previous analysis, touching our first target at 1765, recording the lowest price of 1763.

Technically speaking, and by looking at the 60-minute chart, we find that the RSI indicator began to gradually lose the bullish momentum, accompanied by the obvious negativity features on the stochastic indicator.

Consequently, the negative pressure on gold prices may continue, provided that the support level of 1765 is confirmed, and this will facilitate the task required to visit 1756 and then 1750 respectively, noting that breaking the latter leads the price to a strong bearish path with the goal of 1740.

Reactivating long positions depends on gold’s ability to build on the support floor of 1765, a 50.0% correction, in addition to confirming the breach of 1780 and the most importantly 1785, and therefore we target 1790 and the gains may extend later towards 1800/1804.

Note: the 50-day moving average is still providing a positive catalyst for the price.

S1: 1763.00	R1: 1790.00
S2: 1756.00	R2: 1804.00
S3: 1737.00	R3: 1818.00