Gold Hits The Resistance

Gold prices managed to touch the extended target, as we mentioned yesterday. We relied on confirming the breach of the main resistance level 1867, explaining that ​​it enhances the gains to visit 1877, recording its highest level at 1877.

Technically, Strong supply areas at the resistance represented by the target 1877, which forced the price to retreat quickly towards 1849. However, by looking at the 4-hour chart, the current movements are witnessing stability below 1867 represented by a correction Fibonacci 23.60%. We also notice that stochastic has gradually lost bullish momentum.

Therefore, there is a possibility of a bearish bias in the coming hours, targeting the retest of 1843, considering that breaking the 1843 demand point and crawling below it puts the price under strong negative pressure, and we see the price around 1832.

Activating the suggested scenario depends on trading stability below 1868/1867, and most notably 1871, and the latter’s breach leads the price to recover with the aim of 1888. Note: The risk level may be high.

S1: 1843.00	R1: 1871.00
S2: 1832.00	R2: 1888.00
S3: 1815.00	R3:  1899.00