Gold is waiting for a stronger signal 3/3/2023

Narrow-side trading dominated gold prices during the previous trading session and did not show any change in the technical outlook, so the movements were limited from below above 1830, and from above below 1840.

From the angle of technical analysis today, we notice an initial breach above the resistance level of 1828. We note that gold prices continue to receive positivity from the simple moving averages, which support the possibility of an increase. On the other hand, we find the stochastic indicator around the overbought areas, which increases the possibility of the return of the bearish corrective trend.

With the conflicting technical signals and trading confinement between the directional keys 1828 and 1844, we prefer to monitor the price behavior and wait for the following pending orders to be activated to obtain a high-quality deal, to be in front of one of the following scenarios:

The closing of the 4-hour candlestick below 1828, which is considered the key to protect the bearish trend, leads gold to complete the corrective decline, with targets starting at 1812 and extending to 1800, taking into consideration that the official target is around 1788, Fibonacci correction of 50.0%, as shown on the chart.

To get an upward trend requires breaching the 1844 resistance, which is a catalyst that enhances the possibility of additional rises, targeting 1854 and 1865.

Note: Today we are awaiting high-impact economic data issued by the US economy “Services Purchasing Managers Index” and we may witness high volatility at the time of 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: 1831.00	R1: 1844.00
S2: 1825.00	R2: 1854.00
S3: 1812.00	R3:  1865.00