Gold has really had a bit of a beating this week. I think we get some consolidation into $1243 before we make one more play to the bottom. TARGETS ARE AROUND $1227 before more serious bullish consolidation.
I've noticed that when moving averages converge and then cross while in a downward path (like the two next to the red arrows), the trend reverses. The same goes for upward momentum as indicated next to the green arrow.
Large pennant formation over last few days. Cup and handle forming inside of ascending triangle. If can get above 41.80, should move towards yesterday resistance around 42.15, then break out to 43
invalidate if break traingle on 1hr close.
The price action is been ranging in a rectangle consolidation where it is forming a Regular Flat Correction pattern that indicates completion of corrective phase and beginning of a new bullish move or trend. A good risk to reward setup.
Keep a Stoploss: 1290
Target 1: 1340
Target 2: 1375