Technicals of Why Gold Price Is Likely to Trade Even Lower

From June 2011 to April 2013, we note a major bearish topping pattern breaking out below 1,550 and price went for a deep dive to as low as 1,200. This clearly indicates that price is in a bearish environment.

Between June 2013 to Sep 2014, price has been consolidating sideways with lower highs and higher lows, forming a symmetrical triangle pattern. This is pattern will be confirmed when price breaks and stay below 12,40., continuing the over bearish trend.

This triangle continuation breakout has been confirmed and price is now projected to breakout towards even lower prices.

Take Profit Levels, based on Support Levels
TP 1: 1,200
TP 2: 1,160
TP 3: 1,080

Risk
There is a risk that this triangular breakout will evolve into a rectangular sideways consolidation with 1,200 as the lower boundary. This is might be a good idea to take partial profit around the first Take Profit level.

There is also a risk of a short term pullback to the breakout line at 1,240 before prices can trend even lower.

Symmetrical Triangle: stockcharts.com...school/doku.php?id=chart_s...

Rectangle Chart Pattern:http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:rectangle_continuation

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