On February 22, gold hit a high of 1,913.98. From that level, it made a technical correction towards the bottom of the uptrend channel around 1,889.
Currently, the price is bouncing above the uptrend channel and approaching the 21 SMA located at 1,898.
A consolidation above the 21 SMA on the 4-hour chart could accelerate the move higher towards 5/8 Murray in 1,906. With a break above it, gols could reach 6/8 Murray at 1,933.
The entry of Russian troops into the Donetsk and Luhansk areas has had a negative impact on the markets so far. These fundamental data keeps investors taking refuge in gold. It is likely that in the coming days gold will continue to consolidate around 1,890 – 1,914.
As gold remains above the uptrend channel and above 1,898, it is likely to continue that trend and may go as high as the resistance of 1,937.
On the contrary, a sharp break and daily close below 1,885 will be the beginning of a bearish scenario with a fall towards 1,875 and to 200 EMA at 1,840.
The eagle indicator continues to show a positive signal but in an overbought zone. Gold is likely to continue gaining strength in the coming hours.
Support and Resistance Levels for February 23 - 24, 2022
Resistance (3) 1,933
Resistance (2) 1,918
Resistance (1) 1,906
----------------------------
Support (1) 1888
Support (2) 1,875
Support (3) 1,860
***********************************************************
Scenario
Timeframe H4
Recommendation: buy above
Entry Point 1,898
Take Profit 1,906; 1,937
Stop Loss 1,892
Murray Levels 1,937 (4/8), 1,906(3/8) 1875 (4/8), 1843 (3/8)
***************************************************************************
