Gold May Witness a Temporary Bearish Slope 21/1/2022

The yellow metal prices found a strong resistance level at 1847, which we mentioned during the previous analysis that breaching it is a basic and important condition to continue the rise.

Technically, the intraday movement of gold is witnessing stability below the mentioned resistance. However, by looking at the 4-hour chart, we notice the negativity signs that have started appearing on the stochastic indicator and started losing the bullish momentum.

Therefore, there may be a possibility of temporary negative movements aimed at retesting 1830 and 1824 before any attempts to rise again, knowing that the above-suggested scenario does not contradict the bullish trend with targets around 1852 and 1857 once 1847 is breached.

Note: CFD trading involves risks; all scenarios may occur.

S1: 1835.00	R1: 1846.00
S2: 1830.00	R2: 1852.00
S3: 1824.00	R3:  1865.00