Hi. On a bigger picture, from the beginning of the year we can see a side ways movement on gold
, well defined by the white support and resistance
zones. As it seems last time on 26th of march it touched the upper white line and now we could expect in a drop
, waiting for the support zone
1305-1310 to be touched again. But lately we can see the price forming 2 patters. The first one is the triangle which i marked with blue lines and inside it a nice falling wedge
marked with the green ones. What can we expect now? From the ending of last month our price is making a short term down trend with lower highs and lower lows. As the Stochastic
shows, i am expected to see a bounce back down from the higher triangle line (but if not, after breaking and retesting we can go long to 1350-1355 zone), to test again the lower line. If that is confirmed we could see a more side-ways price movement as it aproaches to the apex of the triangle. If the lower line of the triangle is broken we will see a movement to the lower line of the falling wedge
. Don't forget that a symmetrical triangle could break in any direction. Any broken line is an opportunity. Patience is the key. Thank you.