5 minute chart works higher
The price of gold has been moving lower since February 20. A higher dollar has been helping to pressure the price lower.
Today, the price on the daily chart reached a low of $1281.25. That low could not extend to the 38.2% retracement level at $1275.59 or the swing lows in the $1274-76 area (see red circles on the daily chart above). Buyers came in early against the support.
Is the bottom in place?
Drilling to the 5-minute chart you can see some bullish developments.
The price today fell below the low from yesterday at $1282.92, but could not sustain momentum. Have the sellers exhausted themselves? It was a start.
Later in the day the market started to stall the fall near yesterday’s lows. At that point, the buyers started to take more control.
- The price moved above the 100 hour MA (blue line)
- The price moved above the 200 hour MA (green line)
- More recently the price has moved above the topside trend line (see red circles).
The underside of that broken trend line now comes in at $1286.49. If the price can stay above that trend line, the low may be in and the price can correct higher.
Of course if the price moved back below that trend line, and then the 200 and 100 bar MAs, all the bullish bets are off. The seller would wrestle the short term control back from the dip buyers.
Until then, maybe…just maybe….the buyers can start to base and move higher. It is looking a little more bullish for a change.