Gold technical analysis ahead of the US open
(Kitco News) -
Gold has moved another leg lower leading into the US session and at the moment the consolidation in the market is firmly in place. Two sessions ago there was an encouraging move higher and it looked like a move to the psychological $2k level was on the cards but it seems the bears have stepped back in at the end of the week.
Looking closer at the chart the internal trendline marked by the red arrows has been effective once again. If there is to be any revival from the bulls the green resistance at $1874.6/oz is the one to watch. For now, the support levels are key. The next one is at the purple line near $1800/oz and if that break maybe a bear market is confirmed as there is a lower high lower low wave sequence.
The composite volume profile on the right-hand side of the chart continues to build. The area at the green resistance looks like it could become the main value area as it seems to be a magnet for the price. On the downside, there is a low volume node at $1824/oz and it has supported the price on three occasions recently.
Nevertheless, at the moment the price is still 0.66% higher on the week but the consolidation is firm for now. To break the consolidation the red resistance ($1966/oz) or the blue support at the consolidation low ($1772/oz) need to be taken out.