Gold may be forming a bullish flag with a possible target of $1,270. The short-term trend is sideways while gold trades between $1,220 and $1,200. The medium-term trend is neutral as gold price is forming a big sideways triangle. The long-term trend remains bearish.
Blue line = flag pole
Red lines = flag
In the 15 minute chart, we see the bullish flag being formed. A break out above $1,220 will confirm the flag break out with possible target equal to the flag pole. For the time being prices are trending sideways to lower within the red channel.
In the 4 hour chart above we observe the triangle pattern that is being formed. Strong resistance by this pattern is at $1,230. Even if price breaks above $1,220 it will need to break above $1,230-40 in order to confirm the bullish flag and the target of $1,270. Support is found by the Ichimoku cloud at $1,195. I prefer to stay neutral.
The material has been provided by InstaForex Company - www.instaforex.com
