Gold begins to press on the main support 26/9/2023

We remained neutral for the second session in a row, explaining that we are waiting for gold prices to release from the sideways range confined from the bottom above 1913 and from the top below 1930.

Technically, today we find that gold prices have begun to put pressure on the main support for the current trading levels of 1913, which is represented by the 61.80% Fibonacci retracement as shown on the 4-hour time frame chart, and the downward trend is stimulated by the continuation of the negative pressure coming from the simple moving averages.

We tend to be negative, just waiting for confirmation of breaking 1913. This facilitates the task required to visit 1908 and 1903, knowing that the official target for breaking the above-mentioned support level of 1913 is around 1895.

The success of gold prices in consolidating above 1913 and the return of trading stability above 1922 may postpone the expected trend and we will witness attempts to recover with a target of 1930.

We must pay close attention to the fact that price consolidation above the main resistance of the current trading levels of 1930 is capable of thwarting the downward attempts and making gold recover with an initial target of 1936, which may later extend towards 1945, a 50.0% correction.

Note: Today we are awaiting highly sensitive economic data issued by the US economy, “Consumer Confidence,” and we may witness high volatility when the news is released.

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: 1908.00	R1: 1922.00
S2: 1903.00	R2: 1930.00
S3: 1894.00	R3:  1936.00