Market Update: Gold set to break consolidation?
Hi traders, today we’re looking at Gold’s daily chart as the price remains held in a descending triangle pattern.
Gold for some time has really struggled to find direction. Price continues to be held in a descending triangle pattern. These patterns can be continuation or reversal so we will need to wait for a break of the pattern to see if the markets move in a new direction. Currently, the price has started to test the pattern base so on the back of USD strength we may see a break lower but we will need confirmation with a lower close today.
Overall we have mixed price action with a longer-term downtrend but a short to medium term counter-rally. Overall you might think we will look for the longer-term trend to continue but the length of the last counter-rally dilutes that picture a little. If we see a break lower we would like to see one more candle to break the signal candle low to show that sellers have control. If this is a new move lower a possible target could be the March 8 low. Be alert for fast forming higher lows as they could warn that the last counter rally could hold fresh demand.