Volume profile analysis of Gold (XAUUSD) shows that the price is currently retesting the Point of Control (POC)—the price level where the highest volume was traded over the last week. The POC acts as a strong dynamic support/resistance level, triggering a SELL signal at 4018.00.
Volume profile is an invaluable tool for locating institutional price levels. The entry coordinate at 4018.00 represents a balanced price zone where heavy buying/selling volume is expected to initiate. Our stop loss is set at 4030.00 to invalidate the setup if volume shifts.
We are targeting low volume nodes for our take profits: TP1 at 4008.00, TP2 at 3998.00, and our final target TP3 at 3978.00.