That's important because the six-week trading range has the look of a bullish "symmetrical triange", which is shown more clearly in the hourly bars in Chart 8. That pattern is characterized by two converging triangles.
Since it's a "continuation" as opposed to a "reversal" pattern, technical odds favor an eventual upside breakout. Prices need to close above the top trendline (and preferaby) the December closing high at 80.72 to signal a short-term buy. Triangles normally have three pullbacks before turning higher. The last pullback for gold was the third one. In technical work, the third time is often a charm.
No comments:
Post a Comment