Gold is waiting for a new confirmation signal 5/4/2022

Prices of the yellow metal were able to touch the first target required, in which we relied on confirming the break of the strong support floor 1925, targeting 1915 initial stations, recording its lowest level at 1915.

Technical Vision The intraday movements of gold are witnessing a return to stability above 1925, represented by the 50.0% Fibonacci correction, which increases the possibility of a bullish bias. On the other hand, gold trading is still stable below the minor resistance 1936, accompanied by negative pressure from the 50-day moving average.

With the conflict of technical signals and the confinement of trading in a side range confined from the bottom above 1925 and below 1940/1936, we prefer to wait for the activation of the following pending orders:

The resumption of the decline depends on closing the 4-hour candle below 1925 to target 1918 and 1906 next stations, knowing that the official target to break the 1925 support level is around 1891, the Fibonacci retracement of 61.80%, while consolidation above 1940 increases the possibility of retesting 1948, and the gains may extend later towards 1960.

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: 1918.00	R1: 1940.00
S2: 1906.00	R2: 1948.00
S3: 1891.00	R3:  1960.00