Gold – Breaking Out Lower

29 May - Gold Daily Forex Chart

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Hi All,

Gold was consolidating hard since my last commentary (see article). In fact, for those of you who picked it up, gold formed a symmetric triangle pattern (see above).

Since then, price has broken out from both the triangle and the range. Now that price has made a new lower low, I am keen to look for a pullback before taking a short trade.

How low will it go?

It’s always dangerous to predict the future especially in the financial market. However, having a bias is equally important. On this occasion, I refer to the charts to give me an indication of where price is going next.

The near term looks fairly open with a few minor levels on the way. However, $1180 seems plausible at this point in time and, with that, I shall use that as my next target.

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