Gold below resistance of descending price channel 18/10/2022

The pivotal resistance level posted during the previous analysis, at 1666, could limit the limited upward attempts that dominated the gold’s movements and forced the price to maintain negative stability.

From the technical analysis point of view today, the 50-day simple moving average is still an obstacle in front of the gold price, accompanied by the stability of trading below the resistance of the descending channel 1666.

Therefore, the bearish scenario remains valid and effective, targeting 1645 first targets, knowing that breaking it will facilitate the task required to visit the official target located at 1632 price.

The break of 1666 and the consolidation above it may postpone the decline and restore gold temporarily towards 1670, and the gains may extend to visit 1680 and 1686.

Note: The quality of the deal is not high.

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: 1645.00	R1: 1670.00
S2: 1632.00	R2: 1680.00
S3: 1621.00	R3:  1693.00