Gold is still above support 27/3/2023

Gold prices collided with the psychological resistance level of $2000, which forced gold to trade within a bearish slope that aimed to retest the key to protect the bullish trend of 1960 from ending its weekly trading above the mentioned level.

Technically, the overall bullish direction is still the most likely, depending on the stability of trading above the previously breached resistance level and transferred to the 1960 support level, calculated by the continuation of the simple moving average providing a positive impulse, in addition to the RSI’s attempts to obtain momentum signals.

Therefore, with stable trading above 1960, the bullish scenario remains the most favourable, noting that price consolidation above 1986 facilitates the task required to visit the psychological stimulus 2000. It is worth noting that the closing of the 4-hour candlestick above 2009 increases and accelerates the strength of the overall bullish trend, opening the door towards 2020 and 2040, respectively.

Remember that the break of 1960 led gold prices to decline in the intraday term so we will be waiting for an ounce of gold around 1942 and then 1921.

Note: the risk level is high and the general trend needs more confirmation.

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: 1960.00	R1: 2000.00
S2: 1942.00	R2: 2020.00
S3: 1921.00	R3:  2040.00