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Gold needs to break this sideways pattern

Kitco Media
By Rajan Dhall
Published
Updated
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(Kitco News) - The gold price remains in full consolidation mode at the moment. The price is trading around 0.09% higher on Friday during the European and Asian sessions. On the 4-hour futures chart below, the price has been making lower highs but the previous wave low of $1806/oz remains fully intact.

In terms of the volume profile, the price is currently below the volume point of control red horizontal line. This is a slightly bearish signal and the line could act as resistance if the price does move higher. On the downside, the two major supports are $1806/oz and $1785/oz.

On the upside, the price looks very congested. $1840/oz look very stick and the price has had many touches at that price point. The strongest resistance zone is at the black horizontal line at $1861.6/oz. For the bulls to take control of the market the consolidation high at $1882.5/oz is the level to break.

Kitco Media

Rajan Dhall

Rajan Dhall is a financial analyst that has been in the trading industry since 2009. From working in Canary Wharf (London) as a head trader to becoming a journalist on a real-time news desk, Rajan has worked his way through many positions in the financial sector. The main area of Raj's expertise lies in technical and statistical analysis. Rajan currently lectures technical analysis with the Society of Technical Analysts (STA) at the London School of Economics. One of the main areas Rajan has based his analysis on is probability. Raj completed his certification (probability) with Harvard and regularly uses probability theories in his analysis as he feels it helps him add value to his clients and customers.

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