Gold is looking for a stronger signal 21/2/2023

By the end of last week’s trading, gold prices were able to touch the first official stop for the current downward wave, as we mentioned at the price of 1828, recording its lowest level at $1821 per ounce.

Technically, gold prices attempted to recover and compensate for part of their previous losses, trying to retest 1850. However, when looking carefully at the 4-hour chart, we notice a decline in bullish momentum, which coincides with the loss of bullish momentum shown on the stochastic indicator.

We tend to be negative, with intraday trading remaining below 1850, targeting 1828, Fibonacci retracement of 38.20%, as a first target, and breaking it facilitates the task required to visit 1821, and then 1805, the second official target for the current downward wave, and we must pay close attention during this week’s trading that price stability below 1805 opens the way to the target: the third correction, 1787, a correction of 50.0%.

From the top, Rsing above 1865 postpones the chances of a decline but does not cancel them, and we may witness a retest of 1865 and 1878 before resuming the decline again.

Note: Today we are awaiting high-impact economic data issued by the US economy “Services PMI”, and we may witness high volatility during 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: 1828.00	R1: 1850.00
S2: 1821.00	R2: 1865.00
S3: 1805.00	R3:  1878.00