Gold ready to breakout of the triangle [Video]

XAU/USD

Gold remains stuck in a 5 week triangle pattern - Testing resistance at 4360/4370 try shorts & stop above 4380 - a break higher is a buy signal.

Gold is also stuck in a range from 4510 down to 4235, since the 28th of August.

Yesterday's break below 4335 worked this time, triggering the expected move to targets of 4318/15 & minor support at 4302/4297.

(I was looking for this move on Monday so was happy to see it play out yesterday for a potential $30 profit).

We wrote: ''A bounce from here is not out of the question, especially as you do not seem to be able to sustain a move in one direction for a significant period of time. Long positions need a stop below 4290.''

This trade also worked perfectly with a low for the day at 4292 before we shot higher to 4343 & eventually resistance at 4365/4375 over night.

Shorts are already working.

 We do have resistance from the 100 period moving average on the four hour chart, which is tracking closely to a a trend line going back to the 25th of August.

Today this area is at 4360/4370 so it should be worth trying a short (if you are not already short at 4365/4375) with STOP above 4380.

A sustained break above 4380 would then be a buy signal initially targeting 4410/4415 for a quick profit.

A break above 4415 can target 4430/4435 & even 4440.

Just be aware that a break above 4444 can target 4460/4465 for profit-taking on long positions.

 Shorts at 4360/4370 can target 4340/4335, then 4323, perhaps as far as 4318/4315.

A break below 4318/15 can retest minor support at 4302/4297.

A bounce from here is not out of the question, especially as you do not seem to be able to sustain a move in one direction for a significant period of time.

Long positions need a stop below 4290.... Just be aware that a break lower can target 4270.