Technical Analyst: Short-Term Bounce is Likely for Gold Prices

From Corey Rosenbloom: Technical analysis of gold prices reveals a short-term bounce opportunity, as the yellow metal’s consolidation nears a third month.

Gold completed a Triangle and Price Projection Target toward the prior low, which sets up a possible short-term support-bounce rally.

Let’s pinpoint the pattern and plan for a possible bounce.

I’ve gone into more detail and trade planning with our members, but wanted to highlight this possible pivot.

A quick glance shows our Successful Symmetrical Triangle (Midpoint near $1,353) and the recent late-August breakdown.

We had two targets – the simple prior low from late July ($1,320) and the AB=CD pattern – and to an extent the triangle target – also aligning near $1,320.

We’re seeing a clear positive momentum divergence as price stabs into this level.

So will Gold bounce?  That’s your trade!

Look to play the direct movement away from the $1,320 target, be it “dominant thesis short-term bull” or “alternate thesis breakdown bear” (toward $1,300).

GLD-2016-08-25(2)

Investors looking to go long gold, as always, should look no further than the SPDR Gold Trust ETF (NYSE:GLD). The GLD was mostly flat in Thursday afternoon trading, and has gained about 26% year-to-date.

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