Gold Futures Technical Analysis - A strong volume profile level is being tested again
New York (Apr 13) Gold has moved back in its recent pattern of selling off to the mean value area. This area marked in the blue shaded area and is the price where most contracts have been traded. At the moment it is acting as a magnet for the price as there has been so many touches of that zone. The good news is that the price has broken the trend of lower highs and lower lows for now.
This now looks to be a very firm consolidation zone between $1673.3/oz and $1759.4/oz. A break on either side of this area could tell us a lot about the conviction of the market.
On the higher timeframe charts (daily+), this move is still pretty much in keeping with the downtrend and the aforementioned consolidation low is the key area as it looked like a double bottom was forming with a very slight higher low wave. Interestingly the most recent wave high was higher than the last on 18th March 2021 (daily chart) so this could still be the beginning of a move higher but only time will tell to see if that can be sustained. Any support around the current price area could be a good sign of that being the case.
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