from Gold Silver Worlds:
This is a technical view on the gold price, written by analyst Matt Weller. He sees a chart pattern arising, better known as the golden triangle. We reported a similar finding earlier this week in Gold Price About To Break Higher Or Lower.
Gold rallied from below $1,200 to nearly $1,400 over the first 10 weeks of the year. Next, the yellow metal pulled back to 1,300 in late March and has been consolidating in that area ever since. Despite the exasperating trading conditions of late, a developing technical pattern suggests a breakout and possible new trend could form as soon as next week.
As the daily chart below shows, the yellow metal has been putting in a series of lower highs and higher lows over the last month, creating a textbook symmetrical triangle pattern. This pattern is analogous to a person compressing a coiled spring: as the range continues to contract, energy builds up within the spring. When one of the pressure points is eventually removed, the spring will explode in that direction.
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