Gold runs higher and moves above hourly MA levels
...but some overhead resistance on the daily chart
The price action in gold has some bullish and some bearish.
Looking at the hourly chart above, the pair last week, started to move back above the 100 hour MA (blue line) but found resistance at the 200 hour MA (green line).
Earlier today, the price took a small peek above the 200 hour MA, only to rotate back below the level and also the 100 hour MA. That was bearish.
However, the comments out of China reverse that trend and has now push the price back above its 100 and 200 hour moving averages. For traders, staying above those levels at the $1467.08 and $1464.18 will keep the bias to the upside. Move below and the control shifts more to the downside once again. So buyers are making a play. Can they keep control?
Taking a broader look from the daily chart below, the pair of the last 8 trading days has moved below its 100 day moving average currently at $1480.16 (blue line in the chart below). The break below that moving average line was the 1st since the beginning of June. It tilted the bias on this chart more to the downside.
The price low last week did however find support against its 38.2% retracement of the move up from the swing low in May. That level came in at $1446.04.
So from a technical perspective on the daily chart, staying below the 100 day moving average would be more bearish. If the rally today can continue I would expect see sellers against that level on a test (with stops on a break above).
On the downside, if the moving averages on the hourly chart are broken (below the $1464.18), the 38.2% retracement on the daily chart becomes a focus again at the $1446.04 level.
SUMMARY: Intraday, the buyers are making a play on the break above the 100 and 200 hour moving averages. Stay above those moving averages is more bullish. However, there is some decent resistance on the daily chart looming above at its 100 day MA.