Gold Prices Break Triangle Pattern, Providing Buy Signal
Alexandros Yfantis | Oct 07, 2015 07:26AM ET
Gold prices broke the triangle pattern, providing us with a buy signal. Gold prices might pull back today in order to test the breakout area, but an overall trend remains bullish with increased chances for a push higher towards $1,200.
Red line - resistance
Gold prices found short-term resistance at the downward sloping trend line at $1,152. It has broken out of the Ichimoku cloud and is moving towards higher highs and higher lows. We could see a pullback towards $1,130, but I would remain bullish.
Black lines - triangle pattern
Gold prices are breaking above the long-term triangle pattern testing the kijun-sen resistance indicator. A break above $1,156 will give a new bullish signal that could bring the gold prices towards $1,200 where the cloud is found. I would remain bullish as long as we trade above last week's low at $1,104.
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