Gold lower but falls to correction support and consolidates

Technical Analysis

Author: Greg Michalowski | gold

Trades above and below the 100 hour MA but holds above $1400 and the 38.2% of the run higher.

The price of gold is lower on the day (down -$14.50 at$ 1409). It has been lower on the day, with the low reaching $1402.06.  

Trades above and below the 100 hour MA but holds above $1400 and the 38.2% of the run higher.
Technically, the price is trading above and below the 100 hour MA after the Asian session decline, with the contract touching the line (or trading above and below) on 11 of the last 12 hourly bars.   That moving average currently comes in at $1408.01 (see blue line in the chart above).  The market is unsure of the next run. 

ON the downside, the corrective move from the $1439.21 high, has stayed above the $1400 level AND the 38.2% of the move from the June 17 low (last swing low before basing and running higher).   That level comes in at $1398.75.  A move below the $1400 and $1398.75, would weaken the technical picture.  Right now, the correction lower is just a plain old vanilla <38.2% correction to the 100 hour MA area.  

So gold is near a crossroad for bulls and bears.  Stay above 38.2%, getting above the 100 hour MA and closing some hourly bars above that MA line,  and the bulls can shrug off the recent correction as "just being a normal correction".  Move below and there should be more of a retracement with $1386.25 (50%) a target.  

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