Gold is largely trapped in a $1,190–$1,210 range since the last week of August and is struggling to find acceptance above 50-day moving average (MA) today.
As of writing, is changing hands at $1,207, having faced rejection at the 50-day of 1212-1213 level.
As a result, a break above that level will likely embolden the bulls.
That said, only a break above $1,212 would signal a revival of the rally from the Aug. 16 low of $1,160, the technical chart indicates.
Over on the , the metal has charted an pattern. A break above $1,212 (top end of the triangle) would open up upside towards the trending south from the Apr . 11 high and June 14 high.
At press time, the hurdle is located at $1,230. Acceptance above that level would mean the five-month-long bear market has ended at $1,160.
On the downside, $1,184 (lower end of the triangle) is the level to beat for the bears.
However, markets seem to have taken heart from China's measured and watered-down response to the US imports. Hence, the USD – gold's biggest enemy – could remain on the defensive in the near-term, helping the yellow metal climb the flag resistance of $1,212.
1.We can see the resistance is still untouched which indicates that we are still in momentum.
2.We can also notice the descending 50 DAY which coincides with the top line of the pattern.
3.We can also see that if we copy the red as a target to the upside is coincides with previous important levels that price respected at the past.
4.We can also see that if we take the Fibonacci retracements form the beggining of the downtrend as our oscillator is showing through the red colour of the candles,estimated target and previous price important levels are perfectly matched with the 50% and 61,8% Fibonacci retracements levels.
5. strategy used is showing us that the daily trend maybe is trying to change to .
LONG TRADE ENTRY AT 1215$ LEVEL
STOP LOSS AT 1994$ LEVEL
FIRST TARGET AT 1242$ LEVEL
SECOND TARGET AT 1265$ LEVEL
ENTRY AT 1990$ LEVEL
BUY STOP AT 1208$ LEVEL
FIRST TARGET AT 1160$ LEVEL
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