As we start a new trading week, time to check in on some of my favourite markets, and starting with gold, and to take a look at where the precious metal is heading on the daily chart. Last week I wrote the following so the question now, is whether anything has changed since?
Gold continues to remain rangebound on the daily chart, but it is perhaps the weekly chart which is more revealing, and as I mentioned in my last post, the precious metal remains broadly bullish. Why?
And the short answer is no, little has changed other than to say once again we had a confirmation candle of bullish sentiment remaining in place, and I have highlighted this candle on the chart. This occurred at the $1570 per ounce area, and following on, has pushed the price action firmly through the resistance at this level, denoted with the red dashed line of the accumulation and distribution indicator, which has now become support. The following day we saw a solid rise on good volume on Thursday last week and repeated on Friday. The trend monitor indicator is firmly supportive and if we can approach the $1600 per ounce area, this should open the way to a more sustained advance with volumes on the volume point of control histogram falling away.
By Anna Coulling
Charts from NinjaTrader and the indicators are my own and available from Quantum Trading
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