Don’t panic gold bugs!

daily gold chartThe message for gold bugs is clear – don’t panic as Tuesday’s volume and price action sent a clear signal of buyers moving in strongly on the day with a narrow spread down candle on high volume thereby confirming the bullish picture for gold.  This was enough to propel the precious metal through the $1700 per ounce region once more before closing yesterday with a solid up candle on good volume, with bullish sentiment continuing in early trading as the precious metal pushes higher and through $1750 per ounce at the time of writing.

The way ahead is now relatively clear with no price based resistance on the daily chart, and with volume falling on the volume point of control histogram the yellow metal should move through here with ease and break above $1800 per ounce in the medium term with plenty more to come. Note throughout the recent pullback, the trend monitor indicator has remained firmly blue and continues to signal that bullish momentum remains intact.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2016 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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