A "Triangular Flag" pattern is generally a very bullish signal for short term traders. Basically it consists of a spike (the flagpole), followed by a period of sideways trading where the swings up and down gradually become smaller (the triangular flag). At some point, we reach the tip of the flag (the pointed end). The price can then break up or down from there. Usually its to the upside. Many traders are watching for this break, so when it comes it is usually fat and furious (another flag pole).
Previous peaks tend to act as resistance levels. When a resistance level has been solidly broken, that resistance area turns into a support area. On the graph above, I have drawn in the recently broken resistance levels. They should act as support if the price of gold falls.
On the chart I have also drawn the resistance levels which have not yet been broken. These are the green lines. The next resistance level is about $1438. It's very close. We already touched that level but couldn't break through If we break that $1438 level, then gold should quickly run up to the next resistance level of $1489.50 before pulling back and sideways trading in the $1438 to $1489 range.
It is bound to take some time before the $1489 level is broken. However, when it is broken, there is very little to stop gold shooting to over à1$612.
Previous peaks tend to act as resistance levels. When a resistance level has been solidly broken, that resistance area turns into a support area. On the graph above, I have drawn in the recently broken resistance levels. They should act as support if the price of gold falls.
On the chart I have also drawn the resistance levels which have not yet been broken. These are the green lines. The next resistance level is about $1438. It's very close. We already touched that level but couldn't break through If we break that $1438 level, then gold should quickly run up to the next resistance level of $1489.50 before pulling back and sideways trading in the $1438 to $1489 range.
It is bound to take some time before the $1489 level is broken. However, when it is broken, there is very little to stop gold shooting to over à1$612.