The gold price takes a dip lower but there are some support levels in sight

New York (Apr 29)  Gold futures have moved lower in the second half of the EU session and currently trade just above flat. Looking at the chart, one of the key features is the price break of the channel formation to the downside. In true technical analysis fashion, there has also been a retest of the trendline before a subsequent move lower.

The volume profile indicator on the right-hand side of the chart has shown the price has moved back to the value area of the current distribution. $1778.3/oz. If there is to be a move lower into the next distribution $1761.8/oz (green line) is the area the bears will need to break to get to the lower value area at $1729/oz.

On the topside, the blue horizontal line at $1798.4/oz is the next resistance and the previous wave high. There could also be some resistance at the aforementioned broken trendline from the channel formation. If the price does break the resistance zones to move higher it would be a positive signal as a new higher low higher high formation would be made. The next two horizontal resistance lines stand at the previously mentioned $1798.4/oz and $1815/oz.

Reuters