Gold continues trading inside the sideways triangle as shown in the chart below. Prices are trendless for the time being and we are waiting with a neutral stance as long as this sideways move continues.
Gold has paused its decline at the 50% Fibonacci retracement of the upward move from 1,250 to 1,360. This downward corrective move could have one last leg down towards the 61.8% Fibonacci retracement. Above 1,325 this scenario will have small chances. If the triangle is broken downwards then we could see the 61.8% retracement.
The bulls will need first to break above 1,325 short-term resistance and then above the red trend line resistance at 1,350-60. Inability to break above those levels could push Gold prices towards 1,250-60 where the Head and shoulders pattern will be tested as mentioned many times before in our previous analysis. Concluding, short-term resistance is found at 1,325 and short-term support is found at 1,305 and then at 1,290. For now we are neutral. Short-term traders could take action when the triangle breaks.
The material has been provided by InstaForex Company – www.instaforex.com
Gold continues trading inside the sideways triangle as shown in the chart below. Prices are trendless for the time being and we are waiting with a neutral stance as long as this sideways move continues.
Gold has paused its decline at the 50% Fibonacci retracement of the upward move from 1,250 to 1,360. This downward corrective move could have one last leg down towards the 61.8% Fibonacci retracement. Above 1,325 this scenario will have small chances. If the triangle is broken downwards then we could see the 61.8% retracement.
The bulls will need first to break above 1,325 short-term resistance and then above the red trend line resistance at 1,350-60. Inability to break above those levels could push Gold prices towards 1,250-60 where the Head and shoulders pattern will be tested as mentioned many times before in our previous analysis. Concluding, short-term resistance is found at 1,325 and short-term support is found at 1,305 and then at 1,290. For now we are neutral. Short-term traders could take action when the triangle breaks.
The material has been provided by InstaForex Company – www.instaforex.com
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