is currently consolidating under the 1244.75 resistance level
. The consolidation as we can see on the triangle chart pattern is getting tighter and tighter, while the price remains stagnant. The Average True Range
(ATR) indicator also shows that the volatility
is currently at a very low level which could lead to a huge breakout or breakdown in today's London session. The Parabolic SAR
indicator is suggesting a breakdown while the trend is still up as the short term moving averages (10 and 20 period) continue to stay above the long term moving averages (50,100 and 200 period) but over the shorter term period, the trend is flat just like the moving averages, Tenken-sen and Kijun sen are flat. The Bollinger Band
is also getting very narrow which indicates the volatility
is dried off currently. Since the indicators are not obvious on which direction gold
will move, we will keep an eye on the direction that the price breaks this triangle chart pattern. A breakout above this pattern could potentially offer great buying opportunities while a breakdown could potentially offer selling opportunities in today's London session.