Gold trades around $4,169, up roughly $9 on the day, but the rebound keeps stalling below the falling 100-hour moving average near $4,180.40. Sellers stay in control unless buyers can clear that level and hold above it.
Gold is marginally higher on the day, up about $9 to $4,169. The bounce cannot clear the falling 100-hour moving average near $4,180.40, keeping sellers in control despite the modest gain.
Friday's resistance cluster triggered the decline
Last Friday, gold tested a resistance area where four separate technical levels converged near $4,319: the 100-hour moving average, the 200-hour moving average, the 100-day moving average, and the 50% midpoint at $4,319.75. Sellers leaned against that cluster, and buyers could not push through.
The price rotated lower as a result, and the decline accelerated. It broke below the 61.8% retracement at $4,230.70 and fell back toward the August breakout swing area near $4,115.61, where buyers found support and started a corrective bounce.
Buyers already had one shot at the average
Yesterday's rebound briefly pushed price above the 100-hour moving average, but that break failed quickly. Today the price has again approached the falling average, yet buyers have not established a sustained break above it.
That leaves $4,180.40 as the immediate hurdle. Move above and stay above, and the short-term picture improves, with the broken 61.8% retracement at $4,230.70 becoming the next upside target.
The downside target still sits near $4,115.61
Conversely, continued resistance at the 100-hour moving average keeps sellers in control and leaves the $4,115.61 swing area as the next downside target. That zone attracted buyers on the last decline, so a retest would give them another chance to defend support.
Hold above it, and buyers keep the possibility of another rebound alive. Break below and stay below, however, and the downside becomes more vulnerable, with $4,000 the next marked reference.
Source: investingLive
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