Gold Prices Fail to Rally Above Key Resistance
- Gold Prices Fail to Rally Above Key Resistance
- 200 Day MVA Found at $1,247.92
- Looking for additional trade ideas for gold and other commodities markets? Read Our Market Forecast
Gold prices are stalling this afternoon after finding resistance against its 200 day MVA (simple moving average. This line is found at $1,247.92, and a breakout above this point would technically suggest a shift in gold prices long term trend. The last time gold tested this value, prices were directly rejected and turned lower to the standing March low found at $1,204.75. If prices are again rejected, traders should first look for the commodity to test the 10 day EMA (exponential moving average) at $1,233.65 before trading lower.
Gold Price, Daily Chart with Averages
Intraday analysis currently has the price of gold trading under today’s central pivot at $1,247.17. While this is generally interpreted as bearish in the short term, traders should note that prices last bounced from support found at the S1 pivot at $1,232.82. If prices continue to rise, the next critical point of intraday resistance is found at $1,250.35. Gold has already attempted to trade above this value once, but was firmly rejected earlier in the session. A close above this point should be seen as significant however. If gold close above its 200 day MVA, it would be for the first time since November of 2016.
In the event of a bearish price reversal under today’s central pivot, traders should look for a move in price back towards the S1 pivot. This value has been a point of significant support earlier in the session, and a late day breakout would open the commodity to test new daily lows. Other values of support include both the S2 and S3 pivots, found at $1,239.70 and $1,235.42 respectfully.
Gold Price,30 Minute Chart & Pivots
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.