July 10, 2012


  • Gold daily chart in a contracting triangle pattern.
  • For confirming an upper breakout price should trade above 100 Day SMA and the resistance line.
  • Downside may be limited because of the strong weekly support levels near 1520 levels.



  • Price at the middle of the channel testing resistance levels. One hour chart also shows a cluster of resistance in the form of 100 Hour SMA and 50% Fibonacci levels. Bulls must cross these levels to avoid a possible fall towards the channel support line.




  • Price continue to stay within the contracting pattern. Rising wedges mostly breakdown in  favor of bears. But there are cases of rising wedges breakout on the up side. For now if the trend line gets broken we may also see a MACD Sell signal. Staying within the pattern will keep bulls interested.
  • Price finding support near 5 Week High EMA. Price falling this level will favor bears.



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My Favourite Quote

"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore