Gold technical analysis: Trapped in a symmetrical triangle
|- Gold has charted lower highs and higher lows or a symmetrical triangle on the 4-hour chart.
- A triangle breakdown looks likely and could fuel a drop to $1,480.
Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart.
The yellow metal rose to a six-year high of $1,535 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.
A triangle breakdown would mean a temporary top has been made and could yield a drop to $1,480 (Aug. 13 low). A violation there would expose the former resistance-turned-support at $1,453.
As of writing, Gold is trading largely unchanged on the day at $1,502 and the lower edge of the symmetrical triangle is seen at $1,498.
The recent high of $1,535 could come into play if the symmetrical triangle ends with a bullish breakout, although, as of now, the probability of Gold breaking lower appears high, courtesy of the bearish crossover of the 5- and 10-day MAs and the daily moving average convergence divergence (MACD) histogram's drop below zero.
4-hour chart
Daily chart
Trend: Cautiously bearish
Pivot points
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