Gold approaches bearish target 17/5/2022

Gold prices approached the bearish target published during the previous analysis at 1780, to settle for its lowest price at 1786, to find a support floor there around the mentioned level, which forced it to retest the 1823 resistance level, recording its highest level during the early trading of the current session at 1830.

Technically, today, and with careful consideration of the 4-hour chart, we notice the 50-day simple moving average that is still an obstacle, in addition to the negative features that started to appear gradually on the momentum indicator, and that contradict the positive signals coming from the momentum indicator 14 day on short time frames.

Although we tend to be negative, we prefer to monitor the price behavior of gold by waiting for one of the following scenarios:

Continuing the temporary rise requires trading to remain above 1810. We need to witness a clear and strong breach above the 1832 resistance level, which might enhance the chances of touching 1842/1840 initially.

The decline below 1810 puts the price under negative pressure again to enhance the chances of controlling the bearish trend towards 1800 and 1795 areas, respectively, as initial stations.

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: 1795.00	R1: 1840.00
S2: 1769.00	R2: 1855.00
S3: 1752.00	R3:  1881.00