Trend line support at the lows today and a move back above the 100 and 200 hour MA.
The price of gold moved lower yesterday, and today, a lower low was made to start the day. However, that low stalled right at a lower trend line at $1675.88. The low for the day reached $1676. 81. Support held and sellers turned to buyers.
The current price is trading at $1718.50 that’s up near $33 on the day.
On the move higher, the spot price has moved back above the 100 and 200 hour MA (later) at $1698.73 and $1701.29 respectively. The last few hours has seen the price move back above those MAs (and the 50% of the sideways trading range at $1703.46) and more sellers turned to buyers (or more buyers simply entered). The bias turned to bullish on these technical moves.
Risk is the 200 and 100 hour MAs. Stay above keeps the bulls in control.
On the topside, a downward sloping trend line cuts across at $1727.86. That is the next key target. A move above that level opens the door for tests of the recent highs at:
- $1735.10: April 24 high
- $1738.28: April 23 high and April 16 high
- $1747.36: April 14 high
The lower dollar and lower rates have also helped to push the price higher.