Gold is at its official target; prefer to monitor price behavior 23/8/2022

As we expected, a negative trading session witnessed gold price movements within the official descending path, touching the official price target for yesterday’s session at 1727, recording the lowest at 1727.

On the technical side today, the negative pressure from the simple moving averages continues, which supports the continuation of the current downside wave. On the other hand, we find stochastic that started getting positive crossover signs.

With the conflicting technical signals and the price approaching pivotal levels to the general trend in the short term, we prefer to monitor the price behaviour to be facing one of the following scenarios:

The decline below 1727 increases and accelerates the strength of the bearish trend to be waiting for an ounce of gold around $1700, while if the price succeeds in holding out in front of the strong demand area 1727, there is a possibility to retest 1742 and 1755.

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: 1727.00	R1: 1755.00
S2: 1716.00	R2: 1764.00
S3: 1705.00	R3:  1771.00