Gold: careful consideration required 5/10/2023

Gold trading was limited during the previous trading session from the bottom above the recently recorded low at 1815 and from the top below the 1830 resistance level without any significant change.

Technically, by looking at the 4-hour time frame chart, we find positive crossover signals beginning to appear on the Stochastic indicator, and on the other hand, momentum is still declining significantly.

We prefer to monitor price behaviour during the coming hours to preserve what was achieved during this week’s trading. Until we obtain a signal confirming the upcoming intraday trend, we are facing one of the following scenarios:

The price’s cohesion and stability above the resistance of 1830/1831 may motivate the price to reduce losses and achieve temporary gains targeting 1840/1838 initially before determining the next price destination, while failure to breach 1830 with the return of trading stability below 1815. From here, the official bearish trend returns to control gold prices to be Waiting for 1809 and 1806, and the losses may extend later towards 1795 and 1790.

Note: The risk level is 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: 1813.00	R1: 1831.00
S2: 1805.00	R2: 1841.00
S3: 1795.00	R3:  1850.00