Gold has corrected lower in trading today and sits between the 100 and 200 hour MAs (blue and green lines in the chart below).
Admittedly, traders have been banging against the 200 hour MA (green line) currently at the 1278.38. Traders short from the break of the 100 hour MA (and the higher trend line) seem to be leaning against the MA level as the prudent thing to do given the bullishness seen in 2015 so far. That bullishness, has seen the price move up from the January 2nd low of 1168.34, to the high of 1306.50 (or 11.92%). Risk can be defined and limited against the MA level (the price has not had a closing bar below the MA since January 4th). Traders can always resell on the break.
Gold is trading between the 100 and 200 hour MA.
Until then, the pair remains between the “goal posts” as defined by the 100 hour above and the 200 hour MA below. The 100 hour MA is at 1293.87 and the MA line has started to turn over a touch. A move back up to test the 100 hour MA can not be ruled out if this MA can not be broken soon. Traders who are trading against the trend, get impatient if a key target level is not broken. The 200 hour MA represents a key target support level for the precious metal.
