Gold weighed down in triangle consolidation
Gold (daily chart) has continued to be weighed down within a large triangle consolidation pattern, trading about halfway between the 1180-area multi-year low at the […]
Gold (daily chart) has continued to be weighed down within a large triangle consolidation pattern, trading about halfway between the 1180-area multi-year low at the end of 2013 and the 2014 high of 1392.
The 1392 high that was hit in mid-March had provided some impetus for a potential rebound and recovery after more than a year of heavy declines in price. The past five months since that high, however, have seen a steady downside drift up to June, then only a partial rebound to early July, and finally the current consolidation.
These past five months have also seen the major moving averages, including the 200-day and 50-day, generally moving sideways and in tandem. This has highlighted the recent indecision and consolidation for the precious metal.
Currently, price action is trading in a tight range within the narrow span between the 200-day moving average to the downside and the 50-day moving average to the upside.
The low-volatility environment currently prevailing in gold could potentially provide some key impending trading opportunities. On a strong breakout below the 1280 support, a major downside target resides around the 1240 level, last hit in early June. To the upside, a break above 1325 should have further upside objectives around 1345 and then the noted 1392 high.
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