As volume drops off in the April contract it shows up on the continuous contract but that same volume is increasing in the June as it gets ready to become the active month for charting purposes. June will shortly be the contract employed when we do volume analysis on the continous contract but for the immediate time I am having to use a separate chart for the June to catch its volume readings.
Note that the last few bars are showing the transition to it as the most active contract. I apologize for neglecting to catch that my comments on the recent gold chart were the same as yesterday when it comes to the volume. There was a drop off in volume as traders were winding down positions related to the end of the month/quarter but volume picked up to more normal levels yesterday in the June.
Note that strong volume is anything over 75,000 contracts on one of these bars. Decent volume is anthing above 62,000 or so. These are 8 hour bar readings and not the total for the day so keep that in the back of your mind as you review this.
As you can see, there was decent volume driving the move towards resistance but once it got there bulls lost interest in pressing it through that level and volume has now subsided. I want to see what kind of readings we get in the June tomorrow as the new month begins as well as next Monday when we get the advent of a new week to see whether hedge funds are going to come back in and recommit fresh money to the metals.