The surprise announcement by the SNB has led to a big surge in gold as money flows looked for the best place to park their funds. The price of the precious metal has pushed above the 200 day MA in the process at the 1253.54 area. This is a risk level for traders now.
Gold has moved close to the topside trend line on uncertainty from the SNB
The high has extended to 1266.85 – this is just short of the trend line resistance at 1268.48. Traders who have benefited from the move today, seem to be liking the idea that the trend line gives them a risk defining level to lean against to take some profit. If the level holds, the longs have maximized the profit. If the level is broken, traders can get back in if they so choose. Look for the level to give traders cause for pause as risk can be defined and limited.
