Gold may test support 17/11/2022

For the second session in a row, gold prices collide with the pivotal resistance level published during all reports of this week at 1787, explaining the importance of this level to the general trend in the short term, which forced gold to trade negatively and now hovering around its lowest level during the morning trading at $1763. .

Technically, and by looking closely at the 240-minute chart, we find clear signs of negativity on the stochastic indicator, which started to lose bullish momentum gradually. On the other hand, we find the 50-day simple moving average that continues to hold the price from below.

Despite the conflicting technical signals, we tend to be positive during today’s session. However, the possibility of a bearish bias that aims to retest 1755 and 1747, and the retest may extend to 1732, Fibonacci correction of 61.80%, is still a possibility before rising again.

It should be well noted that consolidation above 1777 negates the idea of ​​a bearish tendency and leads gold prices to recover with an initial target of 1787, noting that its breach extends the gain, so we will be waiting for an ounce of gold around $1800.

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: 1755.00	R1: 1777.00
S2: 1748.00	R2: 1792.00
S3: 1733.00	R3:  1800.00