Reasons to be cheerful for gold bugs

daily gold chartTerrific to see gold performing so strongly after my analysis at the start of the week where I suggested gold remains bullish, and the $1600 per ounce level was key. Yesterday’s price action breached this comfortably with a solid follow-through in today’s session as the precious metal now pushes into the low volume node area I highlighted on Monday which now offers little in the way of resistance for a sustained move higher. Note the volume of yesterday which was in agreement with the wide spread up candle, and the next level is the high of the volatility candle of the 8th January at $1620 per ounce which also marks a further decline in volume on the VPOC histogram. So plenty of reasons to be cheerful for gold bugs.

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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