Gold touches the bearish corrective target, may resume the decline 18/11/2022

Gold prices succeeded in realizing the idea of ​​the expected bearish bias during the previous technical report, touching the first bearish target required to be achieved at 1755, recording its lowest level at $1754 per ounce.

Technically, and with a closer look at the 4-hour chart, we notice the stability of trading below the strong resistance level 1777, stimulated by stochastic gradually losing bullish momentum.

We tend to decline, continuing towards the rest of the bearish correctional targets of yesterday’s report, knowing that the decline below 1754 signals a resumption of the bearish correction to visit 1744 and 1734 initially, taking into consideration that the official target for the current bearish correction is at 1720, the correction of 38.20%.

Consolidation below 1777 is the key to protecting the expected bearish scenario, and consolidation above it negates the activation of the bearish correction, and gold begins to recover to visit the extended resistance 1787/1784.

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: 1754.00	R1: 1777.00
S2: 1744.00	R2: 1784.00
S3: 1734.00	R3:  1794.00