Gold building on support and needs extra momentum 8/12/2022

Gold prices witnessed a trading session that tended to be positive, after it succeeded in building on the support floor published during the previous technical report at 1764, and as a reminder, we adhered to intraday neutrality yesterday due to the conflicting technical signals, explaining that the activation of buying positions depends on the ability of gold to hold above 1780 targeting a re-test of 1786 to record a high of $1790 per ounce.

Technically, and by looking at the 4-hour chart, we find that gold succeeded in forming a good support floor around 1768, and most importantly 1764, accompanied by the positive impulse coming from the 50-day simple moving average, in addition to the clear positive crossover signs on the stochastic.

Therefore, the bullish bias may be the most preferable during today’s trading session, but with caution, taking into consideration that crossing upwards and rising above the pivotal resistance level of 1786 is a catalyst that increases and accelerates the strength of the bullish daily trend, to be waiting for 1800/1802, an initial station with official targets extend towards 1810.

Sneaking below 1764 will immediately stop attempts to rise and put the price under strong negative pressure to enter a corrective downside wave with targets 1758 and 1737.

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: 1770.00	R1: 1792.00
S2: 1758.00	R2: 1802.00
S3: 1748.00	R3:  1814.00