Not a good week for gold bugs

daily gold chart ninjatraderLast week was not one to be remembered by gold bugs as the precious metal fell heavily and the technical resistance I highlighted last time around in the $1520 per ounce region finally capped the most recent rally sending gold plunging through the volume point of control denoted with the yellow line at $1505 per ounce, and onwards lower into the low volume region on the volume histogram to the right of the chart. This is all clearly depicted on the daily chart with the trend monitor also transitioning to bearish red with the yellow trend line diving sharply. Note the selling volumes associated with the wide spread down candles of Tuesday and Thursday last week and confirming the heavy selling by the big operators.

Weekly gold chartMoving to the weekly chart, once again what is clear here is last week’s heavy selling, with the wide spread down candle associated with extremely high volume as the price now moves further into a low volume node of the volume point of control. Below this, volume increases between $1460 per ounce and$1420 per ounce which may provide some support in the move lower. However, as we can see there is no potential price-based support ahead from the accumulation and distribution indicator with the next level at $1418 per ounce which could represent the next stopping point for gold, and with the trend monitor also in transition and rotating out of the longer term bullish phase this too is adding its own bearish tone.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2015 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.

1 Comment on Not a good week for gold bugs

  1. Anna, these deep state banksters are running scared, the dollar is collapsing around them, they are rigging everythink with derivatives, in a minute you will not be able to buy physical gold and silver.
    Kind regards,
    Terry Shead

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