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Gold Prices Consolidate, Forming Symmetrical Triangle

August 21, 2016 at 20:06 by Vladimir Vyun

Prices for gold were moving sideways for some time now, having troubles continuing their previous rally. Moreover, volatility was leaving the gold market, resulting in increasingly smaller moves of the commodity. Usually, some form of a triangle forms on a chart under such circumstances. Indeed, the daily chart of gold shows a symmetrical triangle.

While the symmetrical triangle pattern is a neutral one, giving no edge either to bulls or to bears, it is reasonable to expect the metal to move higher, considering that before the consolidation prices were moving upwards. Therefore, the present chart suggests price objectives for those traders who want to place bullish bets on gold. The yellow Huge Bounce House lines indicate the triangle. If prices move above the upper border of the pattern, it would mean that an upside breakout has occurred. In that case, the cyan line offers an entry point for long positions. When (and if) prices reach the profit target indicated by the green line, it is advised for traders to book profit.

Click the image to enlarge it to a full-size screenshot:

The chart was built using the ChannelPattern script. You can download a MetaTrader 4 chart template for this gold pattern. You can also trade it using the free Chart Pattern Helper EA.

Update 2016-09-01: The pattern does not seem to be valid anymore as the price has broken below the lower border:

Gold - Symmetrical Triangle on Daily Chart - Post-Cancel Screenshot

If you have any questions or comments regarding this symmetrical triangle on gold chart, please feel free to submit them via the form below.

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