Hey Traders, Gold is at a crucial price level right now and we need to keep a close eye on how traders react to this level. We have continued to get round after round of bad economic data & this is beginning to look like 2008 all over again. With that said, this doesn't mean Gold is going to go higher. Gold may actually go lower and continue its long term bottoming formation. Gold is currently trading in a long term Symmetrical Triangle that started at the end of 2015 and has held strong ever since. Profit Targets for this pattern would be roughly $330.00 (Shown on chart below). We need to keep a close eye on how price reacts at this level as it will give us some insight on where the price of metals may go. This pattern could continue forming for a while but when the breakout does occur, I will be looking for a strong breakout accompanied by high volume. Gold has been known to produce false breakouts quite often therefore I would personally take a small position on the breakout if my conditions are met and then wait for a retest to add to that position.
I hope this was helpful, feel free to share your analysis or ask any questions you may have. Thanks Traders & Good luck trading!
I hope this was helpful, feel free to share your analysis or ask any questions you may have. Thanks Traders & Good luck trading!
