Gold needs to be watched 10/1/2023

Gold’s movements did not witness a significant change during the trading of the previous trading session, after several consecutive sessions of incline, to be able to touch the target to be achieved during the past week, 1880, which formed a strong supply point that it was unable to break until now.

Technically, by looking at the chart with a 4-hour interval, we find the simple moving averages support the daily bullish price curve accompanied by the price stability above the strong support floor 1865; on the other hand, we notice signs of negativity began to appear on the stochastic indicator accompanied by trading stability below the pivotal resistance 1880.

With conflicting technical signals, we prefer to monitor the price behaviour to obtain a high-quality deal, waiting for one of the following scenarios:

Resuming the bullish trend requires that we witness a clear and strong breach of 1880 resistance and that increases and accelerates the strength of the bullish trend, opening the door to visit 1894 and 1910 as next stations.

If gold fails to breach 1880 and returns to trading again below 1865, we may witness the beginning of a corrective decline, its initial target 1845, and later extending towards 1835.

Note: Today we are awaiting the speech of Jerome Powell, Chairman of the Federal Reserve, and we may witness high price 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: 1845.00	R1: 1894.00
S2: 1813.00	R2: 1911.00
S3: 1796.00	R3:  1945.00