The high near $1300 last week, turned the tide to selling
The price of gold is down about -$7.00 in trading today. The current price is at 1253.97. The low reached 1251.58. The high was at 1266.69.
Technically, last week the price stalled near the high live from April at $1295.56. The high last week peaked at 1296.15. The double top (it was close enough for me), has seen the price move lower (5 of the last 6 days are lower - counting today). The price is moving toward the key 100 day MA at 1246.95 (blue line in the chart above). That is a key level that would need to be broken for a more bearish bias.
Yesterday the market had some volatile up and down action before and after the FOMC decision. Looking at the hourly chart, the price moved above the 100 and 200 hour MAs (blue and green lines in the chart below). However, the fall back below the 100 hour MA after the FOMC, has seen the price stay below that MA (more bearish). The bears are in control.
Today the 100 hour MA was tested at the day highs, but found sellers. We are currently trading near the day lows.
What next?
In the fall lower today, the price moved below a lower trend line at the 1257 level. It also moved below the 50% retracement of the move up from the May low at 1255.27. Those levels are now risk defining levels for shorts. The next targets will look toward the 61.8% at 1245.62. That level is close to the 100 day MA at 1246.95. So look for buyers to show up in the 1245.50 to 1247.00 (or at least give sellers a cause for pause).
ON a move back above the 1257 level, and the sellers should give up for now. Look for a move back toward the 100 hour MA at 1265 area.
