Gold bounces near 100 hour MA on dip
The 100 hour MA acts as a barometer for market bias
Looking at the hourly chart of the spot gold, the price has more or less, used the 100 hour MA as a barometer for the bulls/bears. Yes....there has been some tails below and above the line of late but generally speaking, move above is bullish. Move below is bearish.
The price tumble below the 100 hour MA yesterday but fell short of the rising 200 hour MA (green line). The price corrected to the 100 hour MA line (blue line), peaked above, but kept a lid against the line into the Asian session today. That is until, the yields started to fall, stocks moved lower. The price broke above, and has stayed above.
There has been a somewhat strange correction in the current hour (despite stocks remaining weak). That correction stalled ahead of the 100 hour moving average line (similar to the stall against the 200 hour moving average yesterday). The price bounced.
The bulls remain in control with $1520 as the next level to break above. Above that and the high from yesterday at $1535.11 will be eyed.
Risk is a break below the 100 hour MA. Of course, stocks and bonds (and headline news) willl be a major influence for the precious metal (hence the need to be aware and use technical levels to define risk). For now, however, the bulls are back in control.