Gold is looking for a stronger signal 1/6/2023

We adhered to intraday neutrality during the previous technical report due to the conflicting technical signals, explaining that we are waiting for the pending orders to be activated with the breach of 1945 or the breach of 1977, so that gold’s movements witness a sideways context that is inclined to rise during yesterday’s session, recording its highest level near the main resistance of 1977.

Technically, looking at the 240-minute chart, we notice the continuation of the conflicting technical signals. Stochastic is still providing negative signals, and on the other hand, the simple moving averages are trying to push the price to the upside, and we find the RSI around neutral areas.

We prefer to monitor the price behavior of gold for the second session in a row until we get more clear signals to be in front of one of the following scenarios:

For the return of the bearish trend, we need to witness a clear and strong break of the main support floor of 1945 correction of 50.0%, which leads gold to complete the bearish trend, with targets starting at 1936 and 1913 correction of 61.80%.

The price consolidated above the main resistance of 1977, 38.20% correction, which can enhance the chances of a rise towards 1990 initially.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “the change in private sector jobs” and the “manufacturing purchasing managers” index, in addition to the report issued by the International Energy Agency regarding oil inventories and we may witness high volatility in prices at the time of the news release.

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: 1953.00	R1: 1974.00
S2: 1942.00	R2: 1984.00
S3: 1932.00	R3:  1995.00