Gold breaks through the resistance and resumes the rise 30/5/2022

Quiet positive trades dominated gold’s movements during the previous session’s trading. After retesting the strong support level at 1840 price, it returned within the bullish path, now stable around the session’s highest level around 1857 resistance.

Technically, we explained yesterday that the condition for continuing the rise is cohesion above the 1857 level. However, with careful consideration of the chart, we find the price stable above the 1840 support floor accompanied by the positive motive of the simple moving averages that support the rise in conjunction with the clear positive signs on the RSI stable above The middle line is 50 on the short time frames.

Therefore, the bullish path is the most likely, provided that we witness stability in the price above 1857, which open the for a door visit to 1866/1865, a first target, considering that the breach of the mentioned level opens the way towards 1876 initially. The gains may extend later to visit 1883.

Activating the bullish scenario depends mainly on the price stability above 1838, and breaking it renews the chances of the bearish tendency controlling the price towards 1825 and 1810.

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: 1852.00	R1: 1867.00
S2: 1842.00	R2: 1872.00
S3: 1837.00	R3:  1882.00