Gold hit a recent low at 1071.28 on July 20th and has since the been trading in an increasingly smaller range which has given rise to the triangle formation, as can be seen on the day chart, outlined with black lines. That low was nearly the 100% extension line which was traced from the high in January this year to a low in March against the following correction which peaked in May. The formation of a symmetrical triangle like this one will usually lead to a breakout on the downside, as it tends to be a continuation pattern, However looking at the MACD and Stochastic Oscillator both showing signs of over bought with MACD beginning to show signs of a buy signal, it would seem prudent to wait and see which side the breakout actually happens on.

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