Gold Extending Its Gains

The strong resistance levels published during the previous analysis, located at 1856, were able to limit the upward slope in the middle of European trading, which forced gold to retreat targeting a retest of 1832, so gold collides again with the support level of 1838, to push it into a bullish rebound, surpassing the resistance of 1856. We indicated that the breach of the aforementioned level is able to enhance the chances of the rally to visit 1872, recording its highest level during early trading for the current session 1872.

From the angle of technical analysis, and with a closer look at the chart, we find that the stability of trading above the previously breached resistance level 1856/1854 is accompanied by the positive stimulus of the 50-day moving average, which meets near 1854 and adds more strength to it.

Thus, a bullish bias may be likely today, knowing that the breach of 1872 facilitates the task required to visit 1884, a first target, and gains may extend later towards 1890.

Trading again below 1854 puts the price under negative pressure, aiming to retest 1844 and 1838 38.20% correction.

Note: the level of risk may be high today.

S1: 1844.00	R1: 1884.00
S2: 1818.00	R2: 1898.00
S3: 1805.00	R3: 1924.00