Gold needs confirmation 20/6/2023

Quiet, negative trading dominated gold prices during the first trading of this week amid the US market holiday after gold prices found it challenging to maintain the bullish path.

Technically, today, we tend to be negative in our trading, relying on the stability of the price below the simple moving averages, which still constitutes an obstacle, in addition to the clear negative signs on the 14-day momentum indicator and its stability below the middle line 50.

Therefore, we maintain our negative outlook, knowing that confirming the breach of the main support 1945 Fibonacci correction 50.0% facilitates the task required to visit 1932 as an initial target, taking into consideration that the official target for the break of 1945 lies around 1913 correction 61.80%.

Consolidation above 1963 leads gold prices to retest 1970. In general, we suggest the overall bearish trend as long as trading is stable below the main resistance of the current trading levels 1978.

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: 1941.00	R1: 1963.00
S2: 1932.00	R2: 1976.00
S3: 1913.00	R3:  1985.00