GOLD: Price Is Being Squashed And Bears May Take Control
Gold this week has found itself in a wedge awaiting a breakout in either direction. As stated in last week's article we have still failed to see the chart print a new higher high indicating the Bulls may be running out of steam. As you can see from the chart it is possible to trade the market during these periods of indecision in either direction. This triangle will soon break, however, for the next big move for Gold.
In order for a significant move to the upside, the 4th January high of 1298.50 will have to be breached. 1300.00 would be my next target if we breakout from the triangle and the previous high.
Downside potential, in my opinion, could be a relatively big dip down to 1266.00 as we mentioned last week. However, 1290.00 key support level would need to be broken before we can expect this kind of drop coupled with a convincing breakout of the triangle.
My advice for trading Gold going into next week is to sit on your hands, wait for a breakout, retest and continuation away from the triangle before taking that entry!...