Gold is still looking for catalysts 8/6/2022

Mixed trading dominated gold’s movements during the previous trading session, after attempts to break the pivotal support floor at 1850, but ended its daily trading above the mentioned support level.

On the technical side today, and by looking at the 4-hour chart, we notice the attempts of the 50-day SMA to push the price higher, and the 14-day momentum indicator started to provide positive signals on the short intervals.

Despite the technical factors that support the possibility of ascending, we prefer to monitor the price behaviour of gold until it is freed from below 1838, which is a sign to enter within a strong bearish tendency whose initial target is 1828 and 1825, respectively. Losses may extend later to visit 1818 or confirm the breach of the 1852 resistance and, most importantly 1855, and that May be able to boost upside chances to visit 1865 initially.

Note: The risk level may be high.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1837.00	R1: 1855.00
S2: 1828.00	R2: 1865.00
S3: 1818.00	R3:  1873.00