Gold rebounds today to the midpoint of the last move lower

Technical Analysis

Author: Greg Michalowski | gold

50% at $1911.20

The price of gold rebounded today, helped by a lower dollar and some technical buyers.  

50% at $1911.20

The price at the lows tried to extend below the 200 hour MA in the early hours of the day, but could not sustain momentum (green line). The subsequent move higher was able to extend back above the 38.2% of the move down from teh September 16 high at $1896.47. That retracement level held support in the NY session before moving back to the day's high at $1912.01.  

That level did take the price above the 50% midpoint of the same move down from the September 16 high. However, momentum could not be sustained.  The price has moved back down.

What next?

If the price is to go higher it needs to get back above the 50% and stay above. If it can do that the 61.8% would be targeted at $1925.93.

Failure, however, and a rotation lower and retest of the broken 38.2% at $1896.47 will be a barometer for buyers and sellers. That is also near a lower channel trend line (and moving higher).  

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