Technical analysis of gold for January 9, 2018

Gold price is consolidating and moving sideways in the short-term. Price has formed a triangle pattern. Triangles are usually found at the last stages of a trend, so we could see a final break out towards $1,330-40 before the reversal.


Red lines - bullish channel

Blue lines - triangle pattern

Gold price remains inside the bullish channel while moving sideways in a triangle pattern. Support is at $1,316 and resistance lies at $1,322. A break above resistance could push the price to $1,330. A break below support will signal the start of the correction phase of at least the upward move from December lows.


Blue line - expected path

Gold price has broken out of the Ichimoku cloud. The trend is bearish. But it is time for at least a pull back towards cloud support at $1,280. This is not the time be long on gold but look for bearish reversal confirmation.

The material has been provided by InstaForex Company -