Gold hovers around support 22/6/2022

Quiet trading tended to the negativity that dominated gold price movements during the previous session, nullifying the expected bullish scenario in which we relied on trading stability above the support floor of 1830, recording its lowest level during the morning trading of today’s session 1825.

Technically and by looking at the 4-hour chart, we find the 50-day simple moving average pressing the price from above, in addition to the negative signals coming from the 14-day momentum indicator on the short time frames; on the other hand, we find stochastic trying to get rid of the negativity.

With the conflict of technical signals, we prefer to monitor the price behavior from below around 1825 and from above around 1842, noting that the stability of trading below 1825 can turn the path to decline with targets starting at 1820 and 1813 initially.

The decline may extend towards 1780 later, while if gold succeeds in consolidating above 125, The most important thing is to cross up to the resistance level of 1838, and most importantly to 1842. This is a catalyst that leads the gold to regain its ascending trajectory, waiting for 1849 and 1856, initial targets extending later to visit 1876.

Note: The testimony of “Jerome Powell” Chairman of the Federal Reserve is due today, and we may witness high volatility.

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: 1820.00	R1: 1838.00
S2: 1813.00	R2: 1849.00
S3: 1802.00	R3:  1856.00