Gold is still strong as it tries to rise above yesterday’s high of 2,528.93 on Thursday while holding onto important short-term support levels. Gold is trading within Wednesday’s price range, with a high of 2,528.66 and a low of 2,504 as of this writing. The chart illustrates how today’s low rebounded from support, which is indicated by the trendline drawn across the top of the most recent consolidation phase, beginning with the swing high in April. Gold has closed above that line for eight of the past ten days.
The purple top line of a symmetrical tringle pattern indicates key near-term support. The top line and the 20-Day MA, currently at 2,471, converge and point to the same support level. The 20-Day queue is rising and will eventually indicate higher prices. As it does so, the upper triangle line will take its place as the primary near-term support.
Nine days ago, the triangle showed a bullish breakout. Since then, gold has been consolidating. A few days after the breakout, it immediately reached a new record high of 2,532, after which it pulled back to find support at the triangle’s upper line. Nothing has changed since then. Naturally, a breakout above 2,532 will signal a bull trend continuation.
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