Gold has is trading within a huge triangle, with a lower trendline support spanning back to 2018 and an upper trendline resistance spanning back to mid 2020, with a good number of clear rejections of these levels from each.
Gold has just entered the upper boundary again, coming in with a little momentum this time, with RSI just breaking above 70 on the 4H.
I expect to see another rejection in the area of this upper trendline back into the triangle to continue this huge consolidation, but price is getting wound tighter and tighter and may be due for an explosion in the near future.
Expect to see a rejection from this level - which could be taken as a good risk/reward short with stop loss above the trendline - and price to squeeze further into the peak of the triangle, at which point we will be primed for a big breakout.
Whenever it happens, the breakout of this triangle will be one to watch, and I'll be taking a position intending to following the trend in whichever direction it breaks out with the intention of a medium-term hold, which for me would be approx. 7 - 30 days.
Gold has just entered the upper boundary again, coming in with a little momentum this time, with RSI just breaking above 70 on the 4H.
I expect to see another rejection in the area of this upper trendline back into the triangle to continue this huge consolidation, but price is getting wound tighter and tighter and may be due for an explosion in the near future.
Expect to see a rejection from this level - which could be taken as a good risk/reward short with stop loss above the trendline - and price to squeeze further into the peak of the triangle, at which point we will be primed for a big breakout.
Whenever it happens, the breakout of this triangle will be one to watch, and I'll be taking a position intending to following the trend in whichever direction it breaks out with the intention of a medium-term hold, which for me would be approx. 7 - 30 days.
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