Gold Coils Inside a Textbook Triangle: Breakout Imminent

In today’s technical analysis, let’s take a closer look at gold, which has been moving sideways for the past few weeks. Recently, the discussion was focused on defending the key dynamic support, and now the price is approaching the key dynamic resistance — and this one is extremely important. The current structure formed on the chart is a textbook-quality symmetric triangle, marked with red lines. The accuracy with which gold has respected the resistance is remarkable. The price touched it almost perfectly and bounced, but what is interesting is that the drop that followed is not significant. That means buying pressure is still present.

For gold, the trading setup is very straightforward. We are in a triangle, and triangles are breakout formations. Breakout to the upside will give us a strong signal to buy and would likely open the way toward new local highs. On the other hand, breakout to the downside would activate a signal to sell, suggesting continuation of the broader correction. Until the breakout happens, gold remains in a waiting phase, with pressure building for the next impulsive move.

Source: https://www.axiory.com/analytics/technical-analysis/gold-coils-inside-a-textbook-triangle-breakout-imm