Test the 100 hour MA
The price of gold has reversed lower after the move higher took the price above a topside trend line on the hourly chart only to fail. The last few hours have seen the price move lower and in the process has erased the gains for the day. The price is now down around $6 on the day at $1950.70.
The move lower has also moved to test the 100 hour MA at $1949.81. The low just reached $1949.96. The 100 hour MA has tested that MA over the previous two trading days and bounced. Will the contract hold again? Or is the third day the charm for a break lower? Key test for both the buyers and sellers from a technical perspective. A break would next target the 200 hour MA at $1940.46.
Taking a broader look at the daily chart, the price action has been more up and down over the last month or so. Nevertheless, the 50 day MA has held support since breaking higher in June. That MA (white MA line in the chart below) is joined by a trend line just below that level. The MA comes in at $1926.35. That MA and trend line would be other targets on more weakness. A break below, would open the downside for further selling. Holding support would keep the buying and selling up and down pattern intact.