Gold is back for a bullish bounce 13/6/2022

Gold’s movements witnessed strong trading at the end of the last week’s trading, heading to touch the second bearish target published last Friday at 1825, recording its lowest level at 1825, resuming the strong bullish rebound recording its highest level at 1879.

On the technical side today, the pair achieved a clear pivot on the solid support floor of 1838, as we find the simple moving averages still supporting the daily bullish trend, and the 50-day moving average meets around 1850 and adds more strength to it.

Therefore, the possibility of continuing the rise may be valid and effective, provided that we witness a clear breach of the 1880 level, targeting 1886 an initial price station, taking into consideration that its breach is a catalyst that enhances the chances of touching 1891 represented by the 61.80% Fibonacci correction as shown on the 4-hour chart.

Stability above 1850 and, most importantly 1838 is a fundamental condition for the continuation of the rise. Confirming the latter’s break can thwart the bullish scenario and put the price under negative pressure targeting the 1831 and 1810 initial targets.

Note: Stochastic is trading around overbought areas.

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: 1831.00	R1: 1886.00
S2: 1800.00	R2: 1891.00
S3: 1775.00	R3:  1910.00