During the same time frame, Gold has tested the $1360 – $1375 price level on multiple occasions – see resistance line at (1). This action has created a compression pattern that is creating pressure to the upside. This pattern is known as an ascending triangle and would be very bullish for gold IF prices can breakout ABOVE current resistance at $1375.
If gold does break out to the upside, a measured move price objective of $1796 could be reached – see line at (2).
This setup requires patience as Gold is still trading under $1375. Note that a move lower that breaks the uptrend line (around $1275) would negate this pattern.
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If Gold would happen to break above resistance, it would send a bullish message to Gold bulls they haven’t seen in the past 5-years! What gold does at (1) will be important for Silver and Gold mining stocks!
The SPDR Gold Trust ETF (GLD) fell $0.08 (-0.06%) in premarket trading Friday. Year-to-date, GLD has gained 1.74%, versus a -0.46% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.