- Gold bears target the Volume Cluster in the $1,950s.
- Bears seek a bearish extension towards the $1,920s.
Gold has been idlling the Volume Point of Control (VPC) on the hourly chart in a period of consolidation following a break to the downside since the Federal Reserve meeting on Wednesday.
As it stands, the price is caught in a technical channel on the hourly chart from a where a breakout could result in a spike one way or the other.
The current environment is bullish while price trades above the VPC and the 21-hour moving average, testing the resistance of the channel.
1HR chart
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The price is above the 21 moving average and MACD is headed north.
The bulls are bidding the price up from the Volume Point of Control and on a break of the channel resistance, the Volume Cluster will soak up the bids in the $1,950s.
Either way, traders can take advantage of limit orders to either buy or sell on a breakout at either the support or resistance structure of the channel on a lower time frame, such as the 15-min chart.
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