Gold facing strong resistance

As mentioned previously $1320 and $1340 levels still key for gold as a rising USD has added to the of the precious metal, and both the weekly and monthly charts reveal the strength of resistance at these two price levels.

On the weekly chart, the volume point of control also sits at the $1320 price point while on the monthly the VPOC is in the $1340 region adding further weight to the importance of these key levels.

Meantime on the monthly chart, we have a clear channel of price between $1340 and $1400, as denoted by the heavy red hatched line which confirms the strength of resistance now sitting overhead and more importantly the effort and volume that will be required to take out these levels.

To the downside, $1300 is the level to watch as this is where we have a reasonably strong platform of support which, if re-tested, would provide a bounce back.

By Anna Coulling

 

 

About Anna 2009 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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