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Gold Triangle Set-Ups

Published 12/24/2014, 11:25 AM
Updated 07/09/2023, 06:31 AM

Gold

Potential Gold Triangle (Navy Blue)

Gold should have turned up by now to retest the top of its potential navy blue triangle.

That move would probably coincide with ES moving to retest its latest megaphone VWAP, which ES looks about ready to do. If it happens, you could go long on a breakout through the bright blue megaphone VWAP (bright blue horizontal line) with a target of the navy blue triangle top.

But holiday light trading may violate the norms, in which case the bottom of the potential navy blue triangle becomes very important for gold.

If gold breaks out through the potential triangle bottom, the next target is the bottoms of the bright blue and orange megaphones. After that, gold would have a mandatory retrace to at least the bright blue megaphone VWAP before it would be legal for a downward breakout.

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