Gold falls to key support and sees some buying on test
Trend line and low from April 23 stalls the fall
The price of gold has moved lower in trading today. It currently trades around $1270 (down $-6.80) after falling to support at the $1266.40 area and finding dip buyers. At that level, the low from April 23, and trend line support at $1266 stalled the fall. It remains a key level to get below if the the move lower is to continue.
So far the level is finding support buyers. However, if there is a break, the 50% and the 200 day MA at $1253 area is another dual support level that should be a tough nut to crack. Be aware should the $1266 area be broken.
Drilling to the hourly chart below, at the high today, the pair stalled at the 200 hour MA (green line), and that was a contributing technical factor for the fall today. That 200 hour MA (green line at $1278.14) and the 100 hour MA (blue line at $1280.92)) are near the middle of the range trading between $1290 above and $1266 below (see red horizontal lines in the chart below). Stay below the MAs keeps the bears in control.
SUMMARY: Gold held support at a floor at $1266 area. It has a ceiling at $1290. In between sit the 200 hour MA and 100 hour MA. The 200 hour MA held support yesterday before breaking lower. The same 200 hour MA stalled the rally today. Traders are paying attention to it....
Traders are trading the levels and looking for a break.