Why the gold market is near support

Why the gold market is near support

Let’s draw on the facts from the chart

1) We have 3 balance zones. They are marked on the chart with purple profiles. Profiles look like Gaussian Bell (normal distribution). Each next profile (auction) is lower than the previous one. The balanced price in the first profile is 1490. In the second – 1470. In the third – 1456. The balance zones are stepping down. But look at the rate of decline. The first time we went down $ 20. The second time – by 15. The decline slows down. That is, seller pressure exhales.

2) Look at the volumes that I highlighted with arrows. This is a big advantage in sales. But as we can see, they did not lead to a significant drop in prices. This means – support is near. If the market does not fall after a surge in sales, he has found support.

It seems to me that if this support is at the round level of 1450, then we can see a false breakdown of 1450 and then a quick recovery.

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