Gold is facing strong resistance /9/2023

Gold prices declined yesterday after it collided with the strong resistance level at 1945, which forced it to trade negatively, and it will now settle around its lowest level during early trading of the current session around $1936 per ounce.

Technically, and with a closer look at the 4-hour time frame chart, we find the price stable below the pivotal resistance of 1945, represented by the 50.0% Fibonacci retracement. We find signs of negativity beginning to appear on the Stochastic indicator, gradually losing bullish momentum, and bearish technical formation on the time frame. 4 hours.

We tend toward negativity, knowing that breaking 1932 facilitates the task required to visit 1929 as the first target, followed by 1921. We must pay close attention to confirming a break of the latter enhances the chances of retesting 1913, the 61.80% correction, before determining the next price destination.

Only from above does the price consolidate above 1945 with the closing of at least an hour candle above it, invalidating the activation of the proposed scenario, and we witness a trading session in positive areas with a target of 1955.

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: 1932.00	R1: 1945.00
S2: 1927.00	R2: 1950.00
S3: 1921.00	R3:  1955.00