Daily Gold Slips Below Resistance Zone
Yesterday, sellers came into the gold market with the price in the resistance zone, and the market ultimately closed below the mid-point of the day’s range. The RSI has back-to-back readings just on the other side of 62, providing a somewhat dubious up trend signal. This morning, the market has tested the demand line of the recent up trend channel and buyers appeared. Watch today’s close for an indication of the next move for gold.
The Constant Volume Chart (CVB) bar chart, which is set to 250 contracts along with the CQG SnapTrader, shows that the market is trading sideways within the intraday support and resistance zones.
I plot the volume study at the bottom of the chart. I use it to let me know when the CVB is nearing completion. I use the RSI to signal trading range and trending periods.
The very short-term view using the TradeFlow chart, which is the 1-tick TradeFlow with the CQG SnapTrader and my two custom studies set to look back periods of 5-TradeFlow bars, indicates some buying was occurring.