Is Gold forming a bull flag pattern

After a strong rally from $1,400 to $1,510, Gold price is consolidating sideways. This could be a bull flag forming. A break above $1,510 would be a bullish sign as long as price holds above $1.490-85.

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Red lines - bull flag pattern

Purple line - potential price action

Blue rectangle - major support area

Gold price is most probably forming a bull flag pattern. Price might continue to move sideways for the first couple of sessions next week. A break out above $1,510 would be a bullish sign that would give us $1,530 our first short-term target and next $1,550. Breaking below $1,490-85 would most probably cancel the bull flag pattern possibilities, but it would not cause problems to the medium-term bullish trend. Major support area is found at $1,440-50 and any pull back towards that area is considered a buying opportunity.

The material has been provided by InstaForex Company - www.instaforex.com