The gold price is in important area with upside levels in focus

New York (May 20)  The gold price has consolidated in the EU session leading into the U.S. open this afternoon. To be honest I did not expect the trendline retest to happen so quickly but the candlestick pattern is showing some signs there could be a reversal. 

If the real body high of the previous candle is broken and the price closes above the area ($1881.5/oz) it would inspire more confidence that the rally may continue but at the moment the price has remained rangebound within the high and low of the previous day's candle. 

Looking at the volume profile, the price is at an important zone. The level marked by the red shaded area has been pretty strong and it seems like the mean value of the current range. The area above in the green zone is much stronger but we would need to see some volume backing this move up. It was a good sign that the move lower yesterday was rejected with a high volume move up (this can be noted on the hourly chart).

On the downside, moves look like they could be capped by the purple low volume node (LVN) and the yellow area below that at $1765/oz. There is the small matter of the $1800/oz psychological area for the bears to contend with too. 

For now, the bulls remain firmly in charge and as long as $1825/oz holds as a support zone this are looking better for the yellow metal. 

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