Gold needs a negative motive to confirm the corrective downside wave 19/1/2023

Gold failed to achieve the expected bearish target mentioned in the previous technical report, in which we relied on the stability of trading below the 1903 level, explaining that the return of trading stability above 1911 negates the proposed scenario. As a result, gold regained the main bullish path, waiting for an ounce of gold around 1926, recording its highest level of 1925.

Today’s technical vision needs to be carefully considered after the price’s rapid decline due to the collision with the pivotal resistance level 1925. First, we notice the price’s stability above the 50-day simple moving average that supports the bullish daily curve. On the other hand, we find clear negative signs on the stochastic indicator, which started to lose bullish momentum.

We tend to be negative, but with caution, relying on the stability of daily trading below 1925. We await the start of a corrective decline wave targeting 1882 as a first target, knowing that the official target for the aforementioned corrective decline is near 1867.

We remind you that rising above 1925 can entirely thwart the corrective decline scenario and leads gold prices to resume the official bullish path, waiting for 1935 and 1939. The gains may extend to the official target of 1950.

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: 1895.00	R1: 1925.00
S2: 1881.00	R2: 1939.00
S3: 1867.00	R3:  1953.00