The price of gold has been trending to the downside sing the end of August. There was one sharp correction around August 6th, but sellers leaned and the price rotated back lower.
Since then, the price has stayed mostly below the falling 100-hour MA (blue line in the chart above), until today when the buyers made a play above that MA line. However, momentum faded, the price moved back below, and the buyers turned to sellers.
The fall has not taken the price to the lows over the last few days which have created a floor at $1884.60. The price is skimming along that level. A move below would open the downside more.
So 100 hour MA at $1895.36 area is key resistance above, and the developed floor at $1884.60 is support below.
Taking a broader look at the daily chart below, the sellers are making a play with the price now below the 200-day MA and the 38.2% at $1903 to $1906. Staying below those levels going forward would also be a more bearish play technically.
SUMMARY: Buyers had their shot above the 100-hour MA today, but they missed. As a result, sellers are more in control on both the hourly and daily chart, with $1884.60 the next key target to get to and through to increase that bearish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source