Gold price continues its sideways consolidation by forming a triangle pattern. This means that the trend is neutral and traders should wait for a breakout. Gold price as shown in the chart below is trading inside a triangular price range and there is no clear trend yet. So the best thing to do is to wait for a confirmed breakout of the triangle boundaries and then take a position following the trend.
The price is in a neutral trend as shown also by the Ichimoku cloud. The cloud has become very thin and soon we expect to see a strong move towards any direction. Currently, the price is in the middle of the range and that is why it is preferred to wait. Support is found at $1,283 and resistance is at $1,308. Traders could wait for a break of either level before taking a position in order to avoid any price noise action.
Our preferred scenario expects the price to move higher towards the 61.8% Fibonacci retracement near $1,350. Our longer-term view remains bearish with $1,100 as target. Our preferred strategy is to wait for $1,350 to sell with $1,391 stop or if price breaks below $1,268, then we sell immediatelly as there will be very small chances of a move above $1,330.
The material has been provided by InstaForex Company - www.instaforex.com
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