Gold Bounces Back
After breaking the demand line of the uptrend channel yesterday, sellers were not able to attract a following and the gold market recovered, but still closed down on the day. However, the close was well off the lows.
Today, buyers came in and the market traded above the highs for the last fours days, but is still being checked by the resistance zone formed in late February. I plotted a new uptrend channel. As I keep mentioning, because the RSI readings were peaking above 62. That indicates the trend is up. Therefore, the recovery is not a surprise. Now, at some point, sellers will gain control, but that is a difficult forecast to make compared to simply respecting the trend.
The Aggregated TradeFlow chart is set to 5-ticks range (available in CQG 7.5) with my two custom studies plotted. This morning, the market has rallied and formed a resistance zone at the high. Notice, the retest of the resistance zone was accompanied by low volume by buyers (the trend line on the TFCross study). Now, the market has formed a support zone and should test it.
The current and short-term view using the TradeFlow chart is the 1-tick TradeFlow bars with the CQG ChartTrader. I have added the new CQG Order Ticker (available in CQG 7.5).
My two custom studies are set to look back periods of 5-TradeFlow bars. At the time this image was taken, the market was working its way higher. The green buy volume is holding above the red sell volume of the TFVCrss study, and that indicates traders are doing some light buying.
The short-term TradeFlow view can change very rapidly.