Gold is starting to lose momentum 25/4/2023

Gold’s movements witnessed attempts to rise during last Monday’s trading to delay the activation of the corrective decline mentioned in the previous technical report, in which we relied on the stability of trading below the 1992 resistance and in general, below 1997.

Technically, and by looking at the 4-period chart, the 50-day simple moving average still constitutes an obstacle, and it meets around the resistance of the psychological barrier of 2000, adding more strength to it, as we find that the stochastic started to lose bullish momentum gradually.

Despite the technical factors that support the possibility of a continuation of the corrective decline, we prefer to wait for the price to break and consolidate below 1990, which leads gold to resume the decline above, with targets starting at 1978 and 1963, knowing that the official target is located around 1952.

From above, price consolidation above the 2000 barrier can postpone the suggested scenario, and we may witness an upward trend, targeting 2015.

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: 1978.00	R1: 2005.00
S2: 1963.00	R2: 2015.00
S3: 1952.00	R3:  2030.00