Gold has been trading up and down in trading of late. From the bullish side. The prices been able to stay above the 200 day moving average (at 1253.and the 38.2% retracement of the last move up from the December 22 low to the January 22 high (at 1255.19). Staying above these levels, keeps the bullish bias for the precious metal. This is a key technical level for traders going forward. Be aware.
Gold has a floor against the 200 day MA
Looking at the hourly chart, the picture is more bearish. The highs in trading today extended to the 38.2% retracement at the 1273.21 area. On that move to the upside, the price did get above the 100 hour moving average (blue line in the chart below). However, momentum not be sustained, and when the price fell back below the moving average, there was a shift toward the sell side (see chart below).
The price is currently trading near the lows for the day, and the week (the low for the week comes in at 1255.37).
Gold trading near lows
Looking at the 5 minute chart for intraday technical clues, there were some early breaks of the 100 and 200 bar MAs which solicited more selling.
The price action at the lows, are showing more up-and-down volatility (bottom in place?) which has allowed the 100 bar moving average to catch up with the price (blue line in the chart below). That MA is currently is around the 38.2% retracement of the days trading range. If the current correction is able to stay below these two technical levels, it should give sellers more comfort. A move above both levels would muddy the waters for today at least.
Gold keeps more of a bearish bias below the 1263/64 area today.
