Gold Bearish Key Points
• Strong downtrend still in place
• Strong bearish sentiment towards Gold
Bullish Key Points
• Current recovery has room to grow. It could reach a target price of 1409 -1463
• Long term technical indicators supporting the recovery
• DOW JONES expected pull back could favor Gold
• Currently trading at support level -1373
• Expected resistance at 1420
• Important retracement level at 1409 (38.3%) -1485 (50%)
• A symmetrical was in place two trading section ago when prices broke out of the triangle towards the upside, forming like this an ascending triangle.
• The ascending triangle formation currently in place is well supported technically but prices could break in either direction. The likelihood of breaking higher is greater.
• Recent demand from China has prompted to higher prices
• Uncertain outlook for the USA economic has also help the commodity slight recovery
Symmetrical triangles are a balanced structure with the overhead/downtrend line and the support line going up, in the same angle. Typically prices tend to break toward the upside.
The ascending triangle is a way of identifying a point where prices are likely to break. Prices can break in either direction; however a breakout to higher prices it is usually expected.