Gold is facing a decline 1/6/2022

The yellow metal prices declined during the previous trading session to reflect the bullish trend in the last report. Therefore, we relied on the stability of trading above the pivotal support floor 1840, recording its lowest level during the morning trading session of today’s session 1833.

Technically, and by looking at the 4-hour chart, we find that gold confirmed breaking 1850 and then 1840, accompanied by negative pressure coming from the simple moving averages that started to pressure the price from above.

Therefore, chances of a decline may be available today, targeting the following 1825 price stations, and breaking it increases and accelerates the strength of the bearish bias, opening the way to visit 1818. It may extend towards 1810 as long as the price is stable below 1850.

Rising above 1851 can thwart the expected bearish scenario, and gold recovers to retest 1865.

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: 1825.00	R1: 1851.00
S2: 1818.00	R2: 1866.00
S3: 1803.00	R3:  1875.00