Gold tests the solidity of support 19/12/2023

Gold prices are actively seeking to sustain an upward trajectory, having successfully retested the robust 2016 support level during the previous trading session. Intraday movements indicate a stabilizing trend above this critical support level.

From a technical analysis standpoint today, we maintain a positive outlook on our trading stance. This optimism is rooted in the price’s ability to remain steady above the 50-day simple moving average, which consistently reinforces the upward trajectory. Furthermore, positive crossover signals from the Stochastic indicator contribute to our positive sentiment.

Given the daily trading persistence above the 2016 level, the prevailing inclination favors an upward trend. It’s noteworthy that price consolidation above 2034 facilitates the path for reaching 2041 and 2049, respectively, with potential gains extending towards 2065 as the next significant milestone.

However, it is imperative to highlight a cautionary note: any closure of at least an hour candle below the 2016 38.20% Fibonacci retracement would invalidate the activation of the bullish scenario. In such a scenario, gold may undergo a bearish correction, with downside targets around 2007 and 2000.

Warning: The risk level is elevated.

Warning: Heightened risk is attributed to ongoing geopolitical tensions, which may result in increased price volatility. Vigilance and risk management are advised in navigating current market conditions.

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: 2016.00	R1: 2034.00
S2: 2007.00	R2: 2041.00
S3: 1998.00	R3:  2049.00