Gold touches the target station and confirms the break 22/8/2022

Gold prices achieved the awaited technical target referred to during the last analysis at 1746, recording its lowest level at the end of last week’s trading at $1745 per ounce.

Technically, gold prices are now stabilizing around their lowest level during the early trading session of the current session at 1745, confirming the breach of the strong support-into-resistance 1755; we also find the 50-day simple moving average continuing the negative pressure on the price from the above.

Therefore, we are still facing a bearish trend today, with targets starting at 1736 and extending to visit the demand area 1727, knowing that activating the suggested bearish scenario depends on the stability of the daily trading below 1755.

Gold prices consolidation again during today’s session above 1755 will postpone the suggested bearish scenario but does not cancel it, and we may witness a temporary recovery to visit 1770 and 1779, 50.0% correction.

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: 1741.00	R1: 1755.00
S2: 1736.00	R2: 1764.00
S3: 1727.00	R3:  1770.00