Gold Needs Careful Consideration

Gold prices rose significantly to compensate part of the losses last week, touching the stop-loss order published in the previous analysis at 1820, we have indicated that any attempts to breach 1820 are able to postpone the bearish trend and lead the price to an upward path, its initial target is 1837, to record gold at its highest level during Early trading for the current session is 1843, offsetting losses of the selling position.

Technically speaking, and by looking at the 240-minute chart, we find the current moves stable intraday above 1837 Fibonacci retracement 38.20% accompanied by the positive stimulus of the 50-day moving average that tries to push prices to the upside, on the other hand, we find the stochastic indicator is trading within the saturation areas in the purchase.

We prefer to wait a bit because confirming the breach of 1843 is a factor that disrupts the bearish path and can push the prices to re-test the previously broken support that has turned into the resistance level of 1851, a first target that might extend later towards 1866.

Trading below 1817 is able to negate the bullish scenario and put the price under strong negative pressure, targeting 1800 and 1794 respectively.

S1: 1817.00	R1: 1851.00
S2: 1794.00	R2: 1866.00
S3: 1781.00	R3: 1889.00