Tuesday, August 30, 2016

Triangle breakdown on gold

Since the end of June, the price of gold has created what it is known as a symmetrical triangle on the daily chart. A few days ago the price of gold dropped to the lower part of the triangle, but it stalled momentarily around the 55 day EMA on the 1322 level. The bearish momentum accelerates and the price breaks out of the triangle. The 1300 level may act as support, but there is a more important support zone between the 1253 level and the 1264 level. If the price goes back up and enters the triangle, then it may go and visit the upper trendline of the triangle, but since we are analyzing the commodity on the daily chart, then such scenario may take a few more days before developing.


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