Gold has tumbled in trading today on the back of the stronger dollar/strong employment. IN the process, the 200 day MA(green line in the chart below) has been breached and also the 50% retracement of the move up from the December 22 low to the January 22 high. That level comes in at 1239.03 and also corresponds with the high from December 10 at 1238.14. This area is now resistance for traders.
Gold tumbles below the technical support levels on the back of the stronger employment/dollar
Looking at the 5 minute chart below, the technical levels from the daily chart have attracted activity and energy. This increases the levels importance.
On the break of the 200 day moving average at the 1252.79 level, the corrective move found sellers against that key moving average level. Nice.
The subsequent decline found support against the 50% retracement level at the 1237.80 area on the first test. Nice.
The recent break below has seen increased momentum. Traders will be eyeing that level as close resistance on a correction now. Stay below in the bears remain in control. Move above (really up to the 1240 area) and the waters get a little muddy.
Gold on the 5 minute chart has stepped down through key levels. Watching 1237 to 1240 for resistance now.
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