Gold fell to a new 2 week low during Wednesday's trading. That is, until the end of the day when the administration's tax plan was released and Gold rallied higher to close the trading session. However, Gold met resistance at the 21 day moving average and if you look at the Heikin-Ashi chart below, today's trading ended in a strong red Heikin-Ashi candle. That begs the question of whether or not the spike was an anomaly or not. The haDelta indicator is still red. I am still bearish and holding onto my short positions.
As I mentioned last night, there is a strong trading range from 1245 - 1265. I've now outlined that area with a green rectangle. I've also added 2 volume profiles to the chart (you can see them in their entirety on the very bottom chart). The long term Volume Profile dates from the beginning of 2016 to today. What's interesting is that the Point of Control is smack in the middle of that trading range. And that also coincides with the 23% fib retracement of the current year's rally.
The Point of Control on the short term Volume Profile is nearly at the same level as the 38% retracement. If price does drop in the coming days, these would be the areas of interest.
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Disclaimer: This post is for educational purposes only. Trading is at your own risk.
As I mentioned last night, there is a strong trading range from 1245 - 1265. I've now outlined that area with a green rectangle. I've also added 2 volume profiles to the chart (you can see them in their entirety on the very bottom chart). The long term Volume Profile dates from the beginning of 2016 to today. What's interesting is that the Point of Control is smack in the middle of that trading range. And that also coincides with the 23% fib retracement of the current year's rally.
The Point of Control on the short term Volume Profile is nearly at the same level as the 38% retracement. If price does drop in the coming days, these would be the areas of interest.
If you've enjoyed this post, please click the Like button, share with your friends and re-tweet!
Disclaimer: This post is for educational purposes only. Trading is at your own risk.
