Gold Edges Through the Resistance Zone
Today, gold edged above the nearby resistance zone, and sellers have brought the market back down. Yesterday, the market closed lower and the RSI formed a pivot high below 62, which signals a trading range. Now, if the market closes higher today (above the upper side of the nearby resistance zone), then momentum is turning up and sellers cannot gain control. If the market closes down today, then I would expect more trading range behavior.
The Constant Volume Chart (CVB) is set to 1,000 contracts for a longer-term intraday view, and the CQG SnapTrader is displayed. Currently, the recent extreme RSI readings were values above 62, which indicate upside momentum. However, now the RSI has formed pivot highs below 62, which signals a trading range with a bullish bias. I have plotted a number of support and resistance zones showing how behaved once the market hit a zone.
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 readings to signal trading range and trending periods.
The current and short-term view using the TradeFlow chart is the 1-tick TradeFlow bars with the CQG ChartTrader. My two custom studies are set to look back periods of 5-TradeFlow bars. At the time this image was captured, the market was working its way lower. Sellers were hitting bids as indicated by the red sell volume line peaking above the green buy volume line of the TFVCrss study.
The short-term TradeFlow view can change very rapidly.