Gold makes an initial breakout of resistance 2/3/2023

Gold’s positive attempts achieved remarkable gains yesterday, recording its highest level of $1844 per ounce.

Technically, we notice an initial breach above the resistance level of 1828. Furthermore, we note that gold prices continue to receive a positive incentive from the simple moving averages, which support the possibility of an increase. On the other hand, we find the stochastic indicator around the overbought areas, which increases the possibility of the return of the bearish corrective trend.

With conflicting technical signals, we prefer to monitor the price behavior and wait for the following pending orders to be activated to obtain a high-quality deal, to be in front of one of the following scenarios:

Closing the 4-hour candlestick below 1828 leads gold to the bearish correction, with targets starting at 1812 and extending to 1800, considering that the official target is around 1788, Fibonacci correction of 50.0%, as shown on the chart.

Getting an upward trend requires breaching the 1844 resistance, which is a catalyst that enhances the possibility of additional rises, targeting 1854 and 1865.

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: 1823.00	R1: 1844.00
S2: 1812.00	R2: 1854.00
S3: 1800.00	R3:  1865.00