Gold: Triangle pattern to trigger a significant move
|Gold is trading within a narrowing wedge or triangle. According to technical textbooks, this pattern of near-symmetrical lower highs and higher lows implies a significant move is coming once the price of a troy ounce breaks above these barriers, FXStreet’s Analyst Yohay Elam reports.
Key quotes
“XAU/USD is trading above the 100 and 200-day Simple Moving Averages but has failed to break above the 50-day SMA. Momentum is marginal to the upside.”
“Critical resistance awaits at $1,933, which has capped the price twice in October. A break above this level would free gold of downtrend support and the 50-day SMA. The next level to watch is $1,975. which held the metal down in September. Further above, $1,995 and $2,020 await XAU/USD.”
“Support awaits at $1,898, a support line in mid-October, followed by $1,875, a stepping stone on the way up earlier in the month. The next level to watch is $1,850, the low point in September.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.