Can the price break hold support?
The price of gold had traded the whole month of January in at $1276 to $1298 range - until Friday that is. The falling dollar led to a sharp run higher. The price broke above the $1298.60 January high and the natural $1300 level on the way to a high price of $1305.44.
Today, the precious metal has moved lower with a high of $1303.36 and a low of $1299.54. The low was about $1 of the swing high that confiined the range over the last month. A move below that level would put the price back in the up and down "red box" (see chart). The tilt toward the upside from the big rise on Friday would likely lose some of the buyers (buyers turn to sellers).
So far, however, the buyers held support. The price is trying to move back higher.
If the price can stay above the "red box", the next target comes in at $1309.37. That is the swing high from June 2018. A move and the door opens up toward the May 2018 high at $1326 and then the Apirl high at $1366.
The buyers made a play on Friday. The break ouf the near month long "red box" is showing buying interest (PS the Thursday low based at the $1276 area too). The buyers are in control. The sellers need to take back control, with the first step being a move back into the "red box". Absent that, go with the upside break.
