Gold Price in a Triangle; Upside Resolution Favored
Chart Prepared by Jamie Saettele, CMT
-The last update noted that “1130 (2014 low and close to the 200 day avg) does loom as resistance for the gold price. A break above 1130 would be viewed as a positive in what may be an attempt at forming a major bottoming pattern.” Gold has exploded since breaking through 1130. Gold also carved out a wedge breakout on a weekly basis. The origin of the wedge is the target, at 1392. Pay attention to 1340s as well, which is defined by the 200 week average (plotted above) and July 2014 high. The October high at 1191 has held as support, which confirms bullish behavior.