Gold retesting resistance 27/12/2022

Gold prices started the morning trading of the current session on an upward slope, recording its highest level at $1806 per ounce, building on the bullish rebound as a result of the intraday stability above 1795.

Technically, we find the 50-day simple moving average has returned to hold the price from below, motivated by the clear positive signs on the stochastic on the 240-minute time frame.

Despite the technical factors that indicate the possibility of a bullish tendency in the coming hours, we prefer to wait to make sure that the pivotal resistance level at 1810 is breached, which is a catalyst that opens the door to visit 1815. After that, the gains may extend later towards 1824.

Trading stability below 1794 can thwart the attempts to climb and lead gold prices to achieve the basic scenario for retesting 1777 and 1771, respectively.

Note: In light of the absence of economic indicators during the holiday season, the decline in liquidity ratios, and the decrease in trading volumes, we may witness random, irregular movements.

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: 1794.00	R1: 1810.00
S2: 1785.00	R2: 1815.00
S3: 1777.00	R3:  1824.00