the daily chartist

Gold drifting sideways

published 1 year ago
Gold Daily

 Gold is still stuck in a sideways movement since it broke out from the downtrend and entered the range between 1180 buy zone and 1202 - 1214 sell zone. The inside triangle which was charted didn't play out at all, as there was indeed a breach on the 27.09 dipping below 1195.89 where the breach was. Unfortunately, it gave false hopes for a new strong impulse down for the Bears and an overall continuation of the downtrend, these hopes were quickly destroyed because as the soon as the price dipped inside the buy zone, the price was quickly boosted up from the Bulls. Two days later the impulse followed, but with a move up towards the ranges of the triangle (which is invalid anymore) and towards the 1207 level where the movement stopped.  Even though the CCI and Stoch are starting to form up for a sell signal I highly doubt that they are going to be true as the price will keep this range until a strong technical or fundamental catalyst appears. Movement up is highly probable as we've been in a downtrend for some time now and the range is getting more tight so as we know after any trend we have a range and after that, we have a reversal on the trend.