Heads up Traders! Gold is showing its hands.
BREXIT has turned things around in the market and price seems to be in a back and forth with no clear direction in place for now. This happens from time to time and Gold seems to be taking a cue from all those non-directional moves, though a bit stable.
Two weeks ago in the charts in focus for the week, I made a commentary on how bullish Gold was, above ascending channel resistance. In that very week, there was no spicy move to warrant a position on this commodity. This is actually the 3rd week of Gold making no move. There’s a high probability that the choppy price action will be coming to an end soon.
We have been presented with a consolidation pattern that is in the form of an ascending triangle. However, take note that this pattern on Gold is still in the formation process; it is very likely that it will be fully formed after a day or two. Two weeks ago, I was heavily bullish but with a favorable pattern like this one, I’m heavily neutral. I will be neutral until there is a convincing break of ascending triangle resistance or support.
A look at the daily timeframe shows that this pattern has formed in an area where a similar pattern emerged within the period of mid-May to mid-June of 2018. That one pushed the price of Gold lower. The market is never tired of leaving footprints eh? This doesn’t necessarily mean that prices would be pushed lower now, until there’s confirmation like I said above. Trade with care.