The gold price has finally bounced towards our minimum target of $1,140 as expected. The bounce came off the lower triangle boundary at $1,105. The price has stopped right under the triangle resistance and it implies that the sideways move will continue.
The gold price bounced off support at $1,105 and has reached the Ichimoku cloud and upper triangle boundary resistance. The fact that the gold price has stopped in this area is not a good sign for bulls as the price can very easily turn lower if it gets rejected at this resistance.
Black lines - triangle pattern
The weekly candle has changed a lot on Friday and it happened mainly because of the Non-Farm Payrolls number announced and the support of the lower triangle boundary. The price remains trapped between the tenkan- and kijun-sen indicators and inside the triangle. We are waiting for a breakout signal.
The material has been provided by InstaForex Company - www.instaforex.com