Gold at a crossroad, 200 USD+ move, massive symmetrical triangle
This is a Daily chart for Gold. On it we can notice that the price has formed a massive symmetrical triangle. As per the deffinition of the pattern, after the price produces a breakout up or down, the potential movement can be equivalent to the distance between the highest and the lowest points in the pattern. This is about 215 USD movement
If the price breaks to the up side, according to the pattern, it can reach levels of about 2250 - 2270. If it breaks down then it can drop close to the 1800 level
Additional confluence:
- On the daily chart, the price has been showing a lot of respect towards the 50 EMA. On the latest drop it hit it and bounced straight up from it. On the 4H chart, the situation is similar with the 200 EMA
If the price breaks to the up side, according to the pattern, it can reach levels of about 2250 - 2270. If it breaks down then it can drop close to the 1800 level
Additional confluence:
- On the daily chart, the price has been showing a lot of respect towards the 50 EMA. On the latest drop it hit it and bounced straight up from it. On the 4H chart, the situation is similar with the 200 EMA