Gold Tests Pivotal Levels 22/2/2022

Gold prices jumped during the early morning trading after it succeeded in breaching the resistance level of 1905, explaining last Friday that the breach of the mentioned level can extend gold’s gains to visit 1916, recording its highest level at 1914.

Technically, the price’s success in building an intraday basis above 1892 is accompanied by the positive motive coming from the 50-day simple moving average, with the positive signals coming from the 14-day momentum indicator. Despite the technical factors that support the possibility of continuing the upside, we will monitor the price behavior of gold around 1916 as breaking it would push gains towards 1919 then 1930.

Failure to breach the mentioned level with the return of the intraday stability below 1892 may lead to negative movements aimed at retesting 1876 and then breached resistance-into-support 1860, 23.60% correction, as shown on the chart.

Note: The risk level is high

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: 1892.00	R1: 1919.00
S2: 1876.00	R2: 1930.00
S3: 1865.00	R3:  1946.00