Gold attacks the psychological barrier, and the positivity remains 5/10/2022

Gold prices achieved strong gains within the upward trend during the previous trading session, as we expected, touching the official target station located at $1730 per ounce.

Today’s technicals indicate the possibility of continuing the rise, with the positive motive coming from the 50-day simple moving average that supports the daily bullish curve for prices, in addition to the clear positive momentum signs on the 14-day momentum indicator on the short time frames.

From here, and steadily, the daily trading is above the psychological barrier support level 1700; the bullish scenario remains valid and effective, targeting 1735 first target and breaching it, motivating the price to achieve more gains towards 1748 second awaited target.

Trading stability below 1700 may put the price under negative pressure that targets retesting 1685 and 1680, respectively.

Note: Stochastic is around overbought areas, and we may witness fluctuations until we get the expected daily direction.

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: 1700.00	R1: 1735.00
S2: 1680.00	R2: 1748.00
S3: 1665.00	R3:  1768.00