Volume-at-Price On Target in Gold

It’s been a month since I last covered gold in this blog so I thought I’d make an update on what I wrote back in January.  Here’s an excerpt from that January post:

Gold is testing the key zone of resistance at 1218.6 – 1231.1.  This zone of resistance, if overcome, would open the door for further upside and shift the larger bias to bullish.

Until and unless this key resistance zone is broken however, gold remains vulnerable to a resumption of the downtrend that kicked off at the beginning of October last year.

On any pullback, there is support established at 1171.1 – 1186.4.  While above this support zone, gold is well-positioned to continue to work at breaking resistance. 

As you can see below, gold prices did decline from the HVA (high-volume area) resistance zone as expected and then bounced from the HVA support zone (volume-at-price traders had both of these on their radar well in advance).

Since the test of HVA support, gold has broken above the zone of resistance, which now becomes support.  The next upside target is at 1306.  This makes current levels a buying opportunity, risking to below 1218 and targeting 1306.  Only a failure to hold 1218.6 would negate this outlook.

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