Gold is Looking For a Direction

Positive trading dominated the prices of the yellow metal yesterday, nullifying the negative outlook as we expected and touching the stop losses order published during the previous analysis at 1771; we indicated yesterday that any attempts to breach the 1771 resistance level could postpone the bearish bias and we witness a retest of 1781.

Technically and carefully looking at the 4-hour chart, we notice a conflict between the positive signals coming from the RSI and the clear negativity on Stochastic as a result of entering the overbought areas.

We will remain on the fence for the moment until the daily trend becomes clearer, waiting for one of the following scenarios:

The return of trading stability below the support level of 1768, the 61.80% Fibonacci correction, puts the price under negative pressure again, so we are waiting for 1762 and then 1748, respectively.

Confirmation of the breach of 1780 is a catalyst that enhances the chances of rising to visit 1785 and 1794, respectively, and the gains may extend later to visit 1799, 50.0% correction.

Note: The Federal Reserve’s statement and the Fed’s press conference and we may see price volatility.

S1: 1762.00	R1: 1785.00
S2: 1748.00	R2: 1794.00
S3: 1739.00	R3:  1808.00