GOLD chart as it appears is a classic case of Symmetrical Triangle Breakout Up. It has given a breakout in the month of June 2019 & as per expectations is trading upwards since then. The volume at breakout was not significant but is slowly picking up pace. Though a throwback upto $1300 in short term cannot be ruled as the RSI & Stochastic have entered overbought zone & can cool off the prices in coming months but the long term bullish outlook will remain intact. In fact it will be a buying opportunity for those who have missed this bull run after breakout.
Expected Target in Long Term
The Expected Target in Long Term is 1239.42 (1921.07 - 681.65 (Base Distance)) + 1322 (Breakout Level) = $2561
(Note - This is a Long Term target & will take several months to achieve as we are studying monthly chart)
In Symmetrical triangle breakout a Stop Loss is generally kept below the breakout point but as we are dealing in a long term view & thus I recommend a protective stop loss below the cradle point.Thus stop loss should be below $1240.
Expected Target in Long Term
The Expected Target in Long Term is 1239.42 (1921.07 - 681.65 (Base Distance)) + 1322 (Breakout Level) = $2561
(Note - This is a Long Term target & will take several months to achieve as we are studying monthly chart)
In Symmetrical triangle breakout a Stop Loss is generally kept below the breakout point but as we are dealing in a long term view & thus I recommend a protective stop loss below the cradle point.Thus stop loss should be below $1240.
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RSI has given a Negative Diversion in Daily chart. A short term bearish movement cannot be ruled out. Soon we should see the throwback that we have discussed earlier. Traders can sell Gold for short term trading.