Which way will it tilt?
The price of gold fell sharply last week and in the process brought the price down back toward a retest of it’s 100 day MA. That MA stalled the fall, but in trading action today, the price has moved above and below the MA at the $1288.59 level. The low today reached $1282.59. The high has reached up to $1292.04. We currently trade at $1289.34.
The bias for gold is dependent on where the price moves from here. Do we stay above the 100 hour MA and push higher again or does the price move back below the MA? Another key level on the downside is at the $1280.94 level. There were lows in March at that level and the March 4 low was also at that level. So moving below that level will also be more bearish. PS the low today reached a few bucks above that level).
Drilling to the hourly chart below, the 200 hour MA (green line did a great job of stalling the rally on Fridayi. If the price is above the 100 dayMA at $1288.59, getting above the 200 hour MA at $1295.67 and then the 100 hour MA at $1297.75 (it is moving lower), will be the targets that would tilt the bias more to the upside.
The 100 day MA is a key barometer for the bulls and bears. but it does not stop there.
ON the downside, the floor at $1280.94 is a key level to get below.
On the topside, the 200 hour MA at $1295.67 and then the 100 hour MA at $1297.75 would need to be broken to build a more bullish bias.
The good news is the levels are clearly defined.