Gold Futures Technical Analysis: The price hit a roadblock at a significant previous support zone

New York (Apr 20)  Looking at the gold futures daily chart, it is clear to see the price has met some resistance. The level that stopped the yellow metal in its tracks came at around the low seen on 30th November 2020. It was here the price found some support at $1776.5/oz and there was one other subsequent bounce on 19th February 2021.

Now the price could move back to the middle of the consolidation as $1750/oz is the previous wave low. Underneath that $1732.9/oz has been sticky on the intraday charts so keep an eye on that level too.

If the bears remain in charge, the low on the chart of $1673.3/oz could be under threat. This does look like a decent base formation and a couple of higher lows and higher highs have been made. The key will now be the previous wave high at $1759.4/oz as this could be the point where the price breaks back into the previous consolidation. Lastly, the volume has not been great but on the two days the gold price moved higher there was an uptick. It will be interesting to see how much market backing will be there if the price moves lower as this could be a telling signal to if it will continue or not.

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