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Gold is still heading to support levels

Kitco Media
By Rajan Dhall
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(Kitco News) - Gold is trading flat on Wednesday and still seems to be heading to support levels. On the daily chart below the price has broken through the volume point of control (on the volume profile indicator) and is moving to the next support at $1750.78/oz. This level has been used on multiple occasions but is not the strongest support on the chart. The next one down at $1722.36 has had more impact over the time horizon shown and could be a more formidable area to breach. 

If there is to be some break from the bearish pressure, the previous wave high could come into play again. $1787/oz could be retested and if it holds as resistance it could be a sign that more pain is to come. $1809/oz is the point on the chart where most contracts have changed hands. This has been a magnet for the gold price and we could settle there again at some point in the future. 

For now, the bears are firmly in charge of this market and it is prudent to keep an eye on the support zones. 

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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