Wednesday, January 16, 2013

GOLD Daily Triangle Big Picture GOLD Triangle Trade
GOLD Daily
Gold is carving out a triangle on daily charts. 

Upper trendline is in place since first week of September-2011 while lower trendline is in place since mid of May-2012. Since then price is consolidating in this triangle.

A break of this triangle, brings focus to resistance & support area. A break above exposes resistance area around 1800. This area has restrained price moves since November-2011 and has been tested 3 times. A break lower of the triangle exposes support area 1525/30. This area has supported price since September-2011 and has been tested around 3-4 times.

200EMA seems to be turning out flat, indicating consolidation. 

Strategy would be to play bounces from trendline with a stop at break & daily close above/below the trendline. Long/short opportunity comes on a break of triangle.

I am of the opinion that a break of this triangle on either side, defines next bigger move. With 2012 being a inside-candle year, I have few reports calling for Gold weakness in 2013.

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