Technical analysis of Gold for August 19, 2016

Gold price is trapped inside a long-term triangle pattern that will either give the price a push higher towards $1,430 or a decline towards $1,280. Trend is neutral, and traders should be patient and sell near resistance or buy near support.

Short-term resistance is at $1,360 and support at $1,340. Traders are recommended to buy above the support when the price gets near to it, or sell when it nears the resistance. Stop reverse orders should also be used in case we finally see a breakout.

The black lines - triangle pattern

The blue lines - price projection

As I mentioned above, the gold price is consolidating inside a triangle pattern. Price will soon give a buy or sell signal according to the direction of a breakout. Safest strategy is to wait for a break and then open a position targeting either $1,430 or $1,280.

The material has been provided by InstaForex Company - www.instaforex.com

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