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Gold price technical analysis: Support level in focus

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(Kitco News) - Gold has retraced somewhat in the European session and is now -0.66% lower on the day. The price of the precious metal has been climbing recently but all the talk of a faster taper from Fed's Clarida and Waller seem to have taken some shine off the yellow metal. Today the price has moved down to $1840/oz but is heading to an important support area.

Looking at the daily chart below the blue area the price has come to now is the previous consolidation high between mid-July to early September. If the price does break through the zone then the purple area at $1812/oz is next up. From a volume profile perspective the red horizontal line at $1781.1/oz is the volume point of control on the chart. This is where the most amount of contracts have been traded at price. Although it is far away now it could always be tested again. Lastly, the downward sloping trendline on the chart could still be retested and this could also provide some support.

On the topside, if this support does hold then the previous wave high could be tested again. The main resistance still stands at $1918/oz at the red shaded area. Technically this is still and uptrend and the current move lower could still be considered a retracement phase. 



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