GOLD Weekly Chart; Sideways Symmetrical Triangle Ready for Breakout of Breakdown

Gold is completing a long-term, nearly 2-year, sideways symmetrical triangle pattern. The pattern does not tell you direction only magnitude. The vertical side is  from 1630 to 2000 call it 370 points. Thus, a breakout for gold, from 1835 (1825-1850) targets 2205 on the upside. A breakdown for gold, from 1775 (1770-1795) targets 1405 on the downside. Using the vertical blue line inside the triangle is about 240 bucks so the same idea; a breakout targets 2075 and breakdown targets 1535. Choose your poison.

The explosive rally that occurred during the maximum fear of the pandemic in 2020 sent gold to the moon, over 2K. The strong trend higher in gold is verified by the ADX but in late 2020, the ADX dropped below 30 and indicated the strong trend higher in gold is over, and it was. The Aroon flipped in the gold bears favor, but then sideways choppiness takes over adn remains the order of the day.

Gold is flatter than a newlywed's soufflé extending out sideways with the flat moving averages. The 20 and 50-wek MA's are at 1794-1797 so this line of demarcation (support/resistance) is critical going forward. The indicators are not tipping their hand. Everything is lined-out flat sideways so flip a coin.

The US dollar index is topping-out on the weekly chart with neggie d so the dollar will likely become soggy over the coming weeks hinting that up will be the direction for gold. It is best to simply wait for the breakout or breakdown to know for sure. Price is teasing a breakdown currently so watch for a bounce off the lower trend line. 

What may happen is a sustained sideways move and the symmetrical triangle stretches itself out further over several more months. That would mean gold continues moving through 1750-1850 into springtime.

The fireworks occur if gold breaks up through the 1825-1850 upper trend line resistance, or, if gold breaks  down below the 1770-1795 lower trend line support. Keystone is not trading gold currently. 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.