Gold is trying to establish solid support 25/1/2023

Gold prices were able to touch the first official target station during the technical report issued yesterday at 1943 price, recording its highest level of 1943, which formed a strong resistance level that forced gold prices to re-test a typical support level of 1920 and it still maintains the bullish path and is now trading around $1932 per ounce.

Technically, we notice gold prices continuing to receive a positive incentive from the 50-day simple moving average, which meets around the pivotal support level of 1920 and adds more strength to it, stimulated by the clear positive momentum signs on the 14-day momentum indicator.

The bullish trend is still valid and effective, provided that we witness a clear and strong breach of the pivotal resistance 1945/1943, and that increases the strength of the bullish trend, opening the door towards 1950 and 1953 respectively, and the gains may extend later towards 1960.

Stability in trading and price consolidation above 1920 is an essential condition for resuming the required rise, and breaking it can thwart the rise during today’s session, and we are witnessing a bearish trend, with initial targets

Note: Stochastic is negative, and we may witness some fluctuation in the price before getting the official trend.around 1901 and extending towards 1891.

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: 1917.00	R1: 1943.00
S2: 1901.00	R2: 1953.00
S3: 1891.00	R3:  1969.00