Gold consolidating tightly

Evening everyone,

Short post for today: gold consolidating in a tight range. After volatile swings in the second half of last year and the earlier half of this year, gold has recently been trading tightly around $1,600. What I once identified as an upward parallel channel has morphed into a possible ascending triangle. Basically, we have strong resistance at $1,630, and gold’s lows have been higher and higher. Markets can only do two things at the very basic level: consolidate or trend. In this case, after a considerable time rangebound around $1,600, I will be expecting a strong move soon. I have a bollinger band (dark red) on the chart – parameters: 50-day MA and 1.5 standard deviations. You can see the bands getting very narrow. Generally, once the upper and lower bands constrict(converge), an explosive usually occurs.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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