Relatively narrow up and down trading range today

The price of gold has been consolidating in a narrow $13.44 trading range today. The low reached $1849.56 and the high has reached $1863.00. The current price is trading at $1859, up $4.23 on the day.  

Technically, the price correction/consolidation off the low from Monday has allowed the 100 hour MA (blue line on the hourly chart above) to wander lower toward the price. The 100 hour MA is currently at $1865.30.  If the pair is to push higher, getting and staying above the 100 hour MA is the minimum. After that is the 38.2% of the move down from the high last week at $1871.68.  That too is another level that is required to be breached IF the low is in place, and the price is to head higher. 

Note that the low from Monday on the chart above at $1817.49 stalled near other swing levels going back to November 25, November 26, December 1 and December 14.  So that was – and remains – a key support level going forward.  A move below that level would be a further step in the bearish direction.   

For bank trade ideas, check out eFX Plus

Source link