Gold triangle to dictate play
Yet again we are looking at a triangle in gold following the breakout seen last week that led to a spike higher. The fact that we have seen a number of triangles in this market means we have experience of knowing how it typically responds to a break. In this case, we know that directional volatility often follows a break and thus this triangle is well worth watching closely as the week progresses.
As ever, the key will be a break and closed hourly candle above the first swing high ($1240) or below the first swing low ($1202) out of the pattern to dictate play. Until we see that, it seems sensible to expect this pattern to remain in play and thus watch out for intraday reversal signs around the upper and lower trendlines.