Forget what you know about volume and price (+updated chart)
This is not to go contrary to breakout volume on the exact candle that confirmed that breakout… but how volume behaves in actual trending price movement.
The gold space is NOT CROWDED. I repeat.. LOTS of fuel from the crowd to create a meaningful drive… until they crowd out the space. Look… gold is creeping up on dwindling volume. I would be worried of volume was peaking at this level… where a moment of “MAKE IT or BREAK IT” is on the table. Not the case here.
I think when we close above 1800-1900.. the price action will climb up… until we crescendo in volume for a price point. The worry is… we have no reference point as gold will be in “uncharted territory”. We will need weight of evidence… channel lines.. Fibonacci extensions.. measured moves to help us asses exits points. Maybe distance from MA also!
Edit: updated chart. More I observe… I see details… Big note is the longer we stay at current price range.. more volume will crescendo. If we breakout above it… it is now important support. If we break below it.. well gonna be that much harder to get past it. Defining resistance (or support) with volume is great on past events… not so much when you are actually defining it!
good chart and PMs are looking good!
Thanks Mike. Lots of wall of worries still present. So… there you go!
I also see.. the importance of the 1350 breakout is Way more important than the 2003 one… IF I rely on the quantity of volume for that breakout line… Or maybe in time we just get more volume and I shouldn’t read too much into it.
Yes Patrick. You can also study price behaviour in other currencies which have been making new all-time highs for many months already.
True again! So cool we see potential futures for xauusd via other fiats. I’ll check it out. Rabitt Hole #8987544