Gold tilts the bias lower
Price moves below the 100 and 200 hour MA today and stays below
The price of gold peaked last week and again yesterday at $1287.25 area. Today, the high price could only reached $1286.70. The inability to extend higher, helped to tilt buyers to sellers today.
That bias was also helped technically by a move back below the 100 and 200 hour MAs (blue and green line currently) at $1281.65 and $1280.65 repectively. Since the break, the price has stayed below those MA levels. Those MAs are risk levels for shorts now. Stay below, keeps the sellers in control…Move above and sellers will likely get out of their shorts.
On the downside, the $1269.58 is the swing low from May 21 and the low from last week. Below that the double bottom at $1266.42 are the next key targets.
Taking a broader look at the daily chart, the contract trades between the 100 day MA above at $1296.58 and its 200 day MA below at $1260.36 (blue and green lines). The pair tested a lower trend line at $1276.23 today and has so far held.
If going lower, that “old trend line” will need to be busted with momentum.
Sellers are in control below its 100 and 200 hour MAs on the hourly chart.
ON the downside, cracking the $1276.23 trend line would help increase the bearish momentum for the pair.