Gold price was pushed up towards $1,195 as we had expected. It seems that the sideways movement is forming a triangle pattern. Traders should wait for a confirmed breakout above or below the triangle boundaries before taking any action.
Blue lines= triangle pattern
Gold price is still below the Ichimoku cloud in the 4-hour chart but has not broken below the lower triangle boundary at $1,185. Support is crucial at this level and it should be used as a stop for any long position and the level that gives a new sell signal. On the other hand, gold has resistance at $1,205 where the upper triangle boundary is found. Breaking above that level will give a buy signal with a target at $1,250-60.
In the weekly chart, the price remains trapped between the kijun-sen and the tenkan-sen. Support of the tenkan-sen was tested and held. The price continues to trade above it so the sideways consolidation is not finished yet as the price remains trapped within a trading range.
