Gold Futures Technical Analysis: The bulls push past the value area
(Kitco News) - Gold is still technically in a sideways move but there has been a bullish bounce off the mean value area. The area is represented by the blue shaded area below the current price and is the place on the chart where most contracts have been exchanged.
Now for the bulls to remain in control of this market they will need to take out the gold resistance level at $1759.4/oz. This would create a new higher low higher high formation and then the next resistance target of $1768.4/oz could be the next zone of resistance.
On the downside, the mean value area at $1730/oz is the next support followed by an old wave low at $1697/oz close to the $1700/oz psychological area.
The main consolidation low is still $1683.3/oz and if this breaks it will be the end of this current base formation. There has been an interesting anomaly at the U.S. open recently where around 40K contracts are being sold like clockwork in the first half an hour of trade. There could be some block trades going through and it is something to keep an eye on moving forward. For now, volume in the EU session remains light but on 13th April there were some large long orders executed.