The sideways symmetrical triangle pattern is in play and price will likely decide the direction today. The vertical side is about 30 handles so using 1410 as a pivot, this targets either the 1440's on the upside, or 1370's on the downside. The price move out of the triangle is obviously extremely important. With the 8 MA under the 34 MA the move should be lower but, with GDP on tap this morning, the market bulls may reverse the negativity on a happy number. Price closed at 1409, the 38% Fibonacci retracement shown on a previous chart. The indicators all display the sideways nature of price over the last week. Chairman Bernanke provides the answer for markets on Friday but the triangle wants to decide today. Sometimes sideways triangles may stretch out further which may occur since the big decision is two more days away.
Note the smaller triangle (thin blue lines) shows price falling thru the lower trend line already and this triangle would project about an 18 handle move to 1391-ish. The 8 and 34 MA cross tells you everything you need to know moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
The only thing that seems to be trading with a little civility is fading gold on the top of its average true range. Going to have to careful now the not so nice BoTs will in market moving things around. Was a nice overnight session.
ReplyDeleteYep MCAP, the gold descending triangle pattern remains in play on the weekly chart, the recent upside provides a nice touch of the downward-sloping trend line. The 65-week MA is 1657, the trend line is 1670, so gold bulls win above 1670.
ReplyDeleteGold stays in a malaise between 1657-1670 and Bernanke will decide its fate on Friday.
Below 1657 godl is in trouble setting up a test of the 1575 triangle base line. Losing 1575 and gold is on its way to the 1200's.