Gold: the decline has conditions 1/7/2022

During all reports of this week, a bearish trend dominated gold prices within the expected bearish path, explaining that exit from that range depends on breaking 1820 and 1842, as activating selling positions requires breaking 1820 and targeting 1800.

Technically, the simple moving averages are still pressing the price from above, in addition to the decline in the momentum on the medium time frames.

From here and steadily trading below the previously broken support and now converted to the 1820 resistance level, the resumption of the decline is the most likely scenario, provided that 1800 is confirmed, targeting 1793 and then 1784 next official station.

Consolidation above 1820 leads gold prices to enter the sideways path again to be the expected trading levels between 1820 and 1842 until the next price destination is determined.

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: 1793.00	R1: 1820.00
S2: 1784.00	R2: 1834.00
S3: 1768.00	R3:  1843.00