Good afternoon, dear traders! I present to your attention a volume analysis of gold. Yesterday’s speech by Jerome Powell weakened the US dollar a bit. The day formed a false breakdown of the bar, which absorbed a false breakdown of the daily level from 10/01/19. I.e there was a push down, which indicated that this is a sales zone. The price came to this sales area without large volumes, which means there is no intention to beat this level.
Today, a downward movement has already begun, therefore, during the day, the expectation of a pullback to local sales levels, from which the expectation is down to the base of the pin bar of purchases from 12.11.19, which has a large enough volume that stopped the downward movement.
Volumetric analysis on H1. We have a Purchasing Bar with a large volume (for Asia), after which the price went down. In addition, there were a lot of purchases in the market in this bar, which is shown by the high delta and the price reaction is down. Thus, there is a limit seller at this level.
Thus, now, I recommend to work carefully on the decline inside the day from the sales zone 1468.5 with a near target of 1464 and further 1456.4.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Volume analysis of gold