GOLD - Descending Wedge bear fake-out, Volumes pointing bullish
- As shown in the chart I believe gold made a failed attempt to break out of the descending wedge patterns trend support.
- This is clearly shown using volumes.
- As shown in the volumes panel above the main chart you can see the volume bar corresponding to the bearish breakdown of the wedge was fairly small and contacted when compared to the previous volume bars before it
- When you compare this volume to the volume produced during the bull move today that broke back inside the wedge, you can see there was clearly more volume, showing more conviction in the bulls move to put price back in the pattern compared to the bears attempt to break out of it
- This is clearly shown using volumes.
- As shown in the volumes panel above the main chart you can see the volume bar corresponding to the bearish breakdown of the wedge was fairly small and contacted when compared to the previous volume bars before it
- When you compare this volume to the volume produced during the bull move today that broke back inside the wedge, you can see there was clearly more volume, showing more conviction in the bulls move to put price back in the pattern compared to the bears attempt to break out of it