Gold – Post Triangle Breakout

On 21 Sep we had call for a Triangle chart pattern breakout on Gold. Price has now declined to the previous low of $1860. The Triangle chart pattern has a measuring price target and going by this Triangle, we have a price target at $1773. If price fails to move above $1860, we could be looking at a move the Triangle’s target at $1773. MACD is still declining and Stochastic is still declining into the oversold extreme. Both indicators are hinting we could see more price downsides ahead.

Sell $1926 for $1906 with a stop above $1934

Price broke the lower boundary of the Triangle chart pattern at $1927.50. MACD has turned bearish and is heading lower. Stochastic has a bearish crossover and is turning down as well. Both momentum indicators are hinting of further price declines ahead. The first support lies at $1909.50 but there is a possibility of $1860 on a longer term basis.

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