Gold: Has a bullish rally started? 29/9/2022

Positive trades dominated gold prices during the middle of the previous trading session, and it was able to breach the pivotal resistance level published during the last report, at 1646, explaining the importance of that level.

Technically, by looking at the 4-hour chart, we find the 50-day simple moving average, which returned to hold the price from below, supporting the rise. This comes with attempts to obtain positive momentum on short intervals.

Therefore, there is a possibility of an upward correction that begins with its targets around 1670, knowing that the rally above 1670 opens the door to visit 1680 next stations for the correction.

Activating the suggested scenario requires a base above 1652, knowing that the decline below the mentioned level puts the price under negative pressure again, and we wait for it to touch 1641.

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: 1617.00	R1: 1637.00
S2: 1609.00	R2: 1649.00
S3: 1597.00	R3:  1657.00