Gold higher on the day but ceiling developing at the high

Technical Analysis

Author: Greg Michalowski | gold

Gold trades above the 100 hour MA but below last week's high

The price of gold is trading up $3.50 or +0.27% at $1307.19.  The low reached $1299.00. That was just above the 100 hour MA (at the time). The 100 hour MA is now at $1303.08 and rising.  If the price is to move lower from here, a break below that MA line would be eyed for a bearish clue.

Gold trades above the 100 hour MA but below last week's high
On the topside, the high today came in at $1310.95 which was just short of the high from last week at $1311.33.  The dual tops within $0.40 of each other is creating a ceiling.   Move above would be more bullish. Stay below keeps the contract between the 100 hour MA below and the ceiling above. 

I would give the buyers a little more of the edge as a result of the price being higher today, and staying above the 100 hour MA, but it is only by a small margin.  

Certainly sellers against the high from last week are not feeling any pain and are just as likely to have the price move back below the 100 hour MA as the buyers are to move above the double top.  

If in a position, however, the target levels are defined and limited. 

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