Price of gold moves above the 38.2% retracement and recent swing highs between $1829 and $1834 area
The price of gold today moved above recent swing highs from July ($1834.14), September ($1834.01) and yesterday ($1832.68). Ceiling broken.
The price also moved above the 38.2% retracement of the move down from the August 2020 high to the March 2021 low. That level comes in at $1829.03 just below those swing highs. Finally, a downward sloping trendline cut between those levels.
Each of those technical levels were broken today on the move up. Bullish. The subsequent move to the upside on the key break, reached its highest level since mid-June at $1868.57.
The next key target on the topside comes in at the 50% midpoint of the same move lower. That level comes in at $1876.02. If the buyers can get above that level, traders will start to look toward the swing highs from the beginning of June at $1916.53.
Drilling to the hourly chart below, after a quick trend run to the upside, I like to look for the 38.2% to 50% retracement area to hold support on dips. The 38.2% retracement comes in at $1850.78 while the 50% comes in at $1845.29. So far, the correction off the high has moved back down to test the 38.2% retracement of the move higher today.
So watch that area between $1845.29 and $1850.78 to hold support. If it does, the buyers remain in firm control/the trend move higher remains intact.
