These days there is much debate about the future direction of gold. Fundamentals of gold are muddled. On one hand central banks continue to print lots of money, but on the other, inflation seems to be under control.
Under such circumstances when the fundamentals are in flux, one can gain greater insight by turning to technical analysis for guidance.
As the chart shows, gold has traced a symmetrical triangle pattern. Many adherents of traditional technical analysis believe that generally a symmetrical triangle is a continuation pattern. Since the long-term trend of gold is up, the symmetrical triangle implies a breakout on the upside and is thus a bullish pattern.
A symmetrical triangle is traced out when two conditions are met. First, neither bulls nor bears are in control. Second, both bulls and bears have lesser and lesser conviction in their position…Read more at Forbes
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