Gold is waiting for big moves today 31/1/2023

Narrow range side trading did not witness a significant change to find gold prices maintaining stability between 1920 and 1936. As a reminder, we indicated during the previous analysis that price consolidation above 1936 is a condition for resuming the bullish trend.

On the technical side, by looking at the 4-hour chart, we find the price failed to breach the resistance of 1936 and begins to test the strength of the bullish trend by re-testing the pivotal demand point 1920, which constitutes the key to protecting the bullish trend, and with careful consideration and despite the negative pressure of the moving averages Simple, which is stimulated by the clear negative signs on the stochastic indicator. Still, we can confirm the negativity only by breaking 1920.

Breaking the support above level 1920 leads gold prices to enter a simple corrective decline; its targets start at 1907 and extend later towards 1898, while if the price consolidates above 1920 and returns to breach 1936, from here gold returns to the official bullish path, with targets of 1945 and 1950, respectively.

Note: Today we are awaiting high-impact data from the US economy, “Consumer Confidence 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: 1917.00	R1: 1936.00
S2: 1907.00	R2: 1945.00
S3: 1898.00	R3:  1955.00