Gold trades back toward highs and looks to test swing high ceiling area

Technical Analysis

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The recent swing high ceiling comes in between $1841.82 to $1845.44

The price of gold is trading up about $14.50 or 0.80% at $1841.24. That moves the price closer to the high for the day and also to the swing high ceiling seen over the last week or so between $1841.82 and $1845.45.  There were 4 consecutive days (going back to last Friday) where the price peaked in that area. 

Yesterday was the exception this week.  Over the corrective move lower, the precious metal did find support buyers near its 200 hour moving average (green line).  The brief break was projected, and the sellers turned to buyers. 

Now with the price move back toward the ceiling area, the question for both the buyers and sellers is what happens this time?

I would risk focused sellers to lean against the area, with stops on a break above.  If you are long from below and looking for continued momentum (probably a lower dollar as that seems to be the catalyst), get above the ceiling should open the door for the next move higher.   

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