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Gold looks primed for a breakout of $2000; and here is why.
The spot price is forming a very clean ascending triangle ; while RSI has reset back down to around 60.0 and is now flashing a hidden bullish divergence . That is, the lows on the price are increasing whereas the lows on RSI are (subtlety) falling. As we expect from a triangle pattern ; the volume is falling slightly - however comparatively to the prior to this rally it is still quite high volume .
From a technical standing; the movement has about 5% upside; though I suspect most of the breakout volume will be absorbed by the psychological resistance that will come at a nice round number like $2000.
Long at either the break of the top of the channel; or (ideally) entering on the retest of the rising trend. The previous higher low will act as the stop loss trigger.
The spot price is forming a very clean ascending triangle ; while RSI has reset back down to around 60.0 and is now flashing a hidden bullish divergence . That is, the lows on the price are increasing whereas the lows on RSI are (subtlety) falling. As we expect from a triangle pattern ; the volume is falling slightly - however comparatively to the prior to this rally it is still quite high volume .
From a technical standing; the movement has about 5% upside; though I suspect most of the breakout volume will be absorbed by the psychological resistance that will come at a nice round number like $2000.
Long at either the break of the top of the channel; or (ideally) entering on the retest of the rising trend. The previous higher low will act as the stop loss trigger.
Trade closed: target reached:
Technical target reached, time to sell off a good chunk and let the rest play out.
Comments
@ProjectSyndicate, played out perfectly. It even gave one extra touch on the trend for a few extra basis points on the move.
Reply
Clean break.