Gold Hovering Around Critical Levels

Gold prices achieved a remarkable rise during the previous trading session after finding a solid support floor near 1828. It is noticed that we indicated in the last analysis that stability above 1848 leads gold to complete the bullish correction with the aim of retesting the previously broken support-into-resistance 1857/1860 to record its highest level during the early trading of the current session 1871.

Technically, and by looking at the 240-minute chart, we find the price is stable above 1848, as we find the 50-day moving average continues to hold the price, and this comes in conjunction with the positive signals coming from the RSI on short intervals.

Despite the technical factors that support the continuation of the rally today, we prefer to remain neutral due to the importance of the current trading levels for the general trend in the short term, so we will wait for one of the following scenarios.

Confirmation of breaching 1870, which is the key to protecting the downside, is able to push the price to visit 1886 and then 1901, respectively.

In the event that gold fails to confirm the breach of the aforementioned level, to return to trade below 1848, from here, we may witness a bearish bias targeting a re-test of 1837 and 1805, respectively.

Note: The level of risk may be high today and careful consideration is required.

S1: 1837.00	R1: 1886.00
S2: 1805.00	R2: 1903.00
S3: 1788.00	R3: 1935.00