Gold repeating bullish chances 8/2/2023

Limited positive attempts by gold prices to compensate for their recent losses, as yesterday’s movements witnessed an upward variation affected by the speech of the Federal Reserve Chairman, explaining yesterday that we may witness fluctuation in prices at the time of the speech, to record its highest level of 1884 after it recorded the lowest of $1865 per ounce.

Moving on to the technical side, the 240-minute timeframe, and we notice the regularity of movement outside the axes of the bullish price channel, with the continuation of the negative pressure coming from the simple moving averages, and the 50-day moving average meets around 1900, adding more strength to it.

We tend to be negative, but with caution, with intraday trading remaining below 1880, 23.60% correction. Chances of a decline remain valid and effective, targeting 1865, taking into account that breaking 1865 facilitates the required task and enhances chances of a decline to visit 1856 and 1845, respectively, knowing that the official target for the current downward wave is around 1829 Fibonacci retracement of 38.20%.

Consolidation above 1885 can temporarily thwart the suggested bearish scenario and supports a scenario of retesting 1895 and 1900 before falling again.

Note: Stochastic is trying to get positive signals.

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: 1865.00	R1: 1885.00
S2: 1856.00	R2: 1894.00
S3: 1845.00	R3:  1904.00