Daily Gold Trades Through the Resistance Zone
This morning gold has broken through the resistance zone. Yesterday’s closing price did lead to the RSI reading at the close to be high than 62, and that turned the momentum bullish. I have plotted a new trend channel for demand and supply lines.
The Constant Volume Chart (CVB) bar chart, which is set to 250 contracts along with the CQG SnapTrader, shows that the market momentum stayed bullish as the RSI readings and peaking above 62 and above 38. That is uptrend momentum behavior.
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 current and 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 buying was weakening with the advance as the green buy volume line was peaking at lower levels as the price head up. Then some selling came in as the red sell volume line started to dominate. These short-term conditions can change very rapidly.