Can the momentum continue?
The price of gold has extended above the 200 day AM today at the 1172.81 area. The price has been above this key MA on seven different days this month, with four closes above. The last six trading days have closed below. Can the market keep the price above this MA? That is the key from a technical basis to keep the buyers in control and potential for further upside.
The highs from earlier this month stalled at the 50% of the move down from the January high. That level comes in at 1189 area.. The high stalled at 1191.30 area on October 15. If the price is to continue higher, a move above the 50% and the October high will be eyed.
Looking at the hourly chart, the breaking of the 200 day MA corresponded with a break above trend line resistance (or close enough). That too has helped the bullish momentum over the last few hours of trading.
The market is also ticking through technical levels on that chart. It started with a run away from the 100 hour MA (blue line at 1166 currently), then the 200 hour MA (green line at 1170.5 currently). The 38.2%, 200 day MA and trend line were next (between 1171.12 and 1172.469), followed by the 50% (at 1174.96) of the move down from the October 15 high. The 61.8% is the most recent level broken (at 1178.79).
That is a lot of targets the trend move today has taken care of. What was once resistance, is now support so keep an eye on each for support buyers going forward. Stay above and the buyers remain in firm control (and the sellers feel the pain).
