Gold has now broken the longer term April 2018 trend line, consolidated and now looks to push higher. We have identified a few points to note prior to taking any long position.
- Key 1240 handle reached (which also happens to be the 38.2 fib level from the Apr run)
- Bear flag pattern forming indicating a potential to reverse lower (confluent with the recent DXY wedge bull breakout)
- Price testing the upper resistance of flag/channel*
- Price exacerbated by equity market volatility and correction
*channel unconfirmed
- Key 1240 handle reached (which also happens to be the 38.2 fib level from the Apr run)
- Bear flag pattern forming indicating a potential to reverse lower (confluent with the recent DXY wedge bull breakout)
- Price testing the upper resistance of flag/channel*
- Price exacerbated by equity market volatility and correction
*channel unconfirmed