Yesterday, it was the 200 day MA (green line) on the downside (see:Gold tumbles but moves toward 200 day MA and retracement support).

Gold held 200 day MA yesterday...

Gold held 200 day MA yesterday…

Today, gold has found sellers against the 100 hour MA (see blue line in the chart below).

Activity should be slowing, with potential for position squaring to take over. However, iIf the level does hold, the the technical lines in the sand will be drawn for the market next week.

..Today the 100 hour MA found sellers on the test.

..Today the 100 hour MA found sellers on the test.

The longer term bias? I have to favor the upside. Technically, the price in January (see chart below)

  • Broke above the 100 day MA (blue line) and trend line.
  • Broke above the 20o day MA (green line) and a higher trend line
  • The correction fell down to the 200 day MA and 38.2% of the move up from the December low
  • The price bounced off that support, keeping the buyers in control.

To continue the move higher going forward, look for the 100 hour MA and 200 hour MA (blue and green lines above) will need to be broken.

The price action is saying buyers remain in control.

The price action is saying buyers remain in control.