Gold prices have just pierced a key resistance level at 976.69. The daily close above this level has generated the bullish resolution of a triangle pattern and projects additional gains toward 1005.40, followed by 1030.80. The triangle pattern has a measured move objective of1108.99.
2009 price action in the gold market can be characterized as a broad consolidationbetween 865 and 1000 that led to the formation of a triangle pattern.
The prices have just pierced the triangle top at 976.69 as the daily studies display upward momentum from oversold levels.
The daily close above 976.69 has reaffirmed the intermediate and long-term uptrend that is in place for the metal, targeting the February 2009 high at 1005.40initially.
The secular high that was formed at 1030.80 in March 2008 serves as another resistance level and secondary price target.
Based on the bullish implications of the triangle pattern, the triangle base at 943.07 and the July 8 reaction low at 905.80 areexpected to attract buying interest during pullbacks.
The triangle pattern has a long-term measured move price objective of 1108.99 and upholds the bullish stance.
Prices will have to register a daily close below the April double bottom at 864.00 inorder to eliminate the topside price pressure and bias.
Gold on the Verge of a Major Pattern Breakout
Linear Mode
