By Russell Glaser – A triangle pattern has formed on the daily chart for spot gold. Traders may be able to take advantage of this pattern by trading in a predictable price range in anticipation for the breakout in spot gold prices.
The lower line of the triangle begins at the start of the previous bullish trend on March 6th. The downward sloping line of the triangle begins at the swing high of daily chart at a price of $1224.70, extending lower to form the vertex of the triangle. Forex and commodity traders may want to go long with a price target at the descending trend line above the price action.
It is also possible to find other patterns here on the chart. One can see a channel pattern that has formed, a descending triangle, along with a reverse head and shoulders pattern. The reverse head and shoulders could signal break of the downward trend and a significant future price appreciation. This price pattern will be presented next week in a future forex technical analysis.
Forex Market Analysis provided by Forex Yard.
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