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18.04.2012 10:19 AM
GBP/CHF Remains Locked, Go Short

Gold price continues to trade inside a triangle pattern above the important support at $1,250 and below the short-term resistance at $1,275. The trend is neutral and traders had better wait.

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Black lines = triangle pattern

Gold is trading inside the range. Gold bulls need to hold above $1,250 and break $1,280. Bears are looking for the exact opposite. Price is below the ichimoku cloud and this is another bearish sign but unless support fails, bulls feel comfortable.

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Gold price continues to test the 38% retracement. This support level if broken will push price towards the green area where the Ichimoku cloud is and the 50 or 60% retracements. A break below the 38% retracement will be a big sell signal with the first target at $1,220.


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