Technicals | Apr 24 2012
After peaking last August above US$1900/oz gold has become a "trader's nightmare", the TechWizard suggests, appearing to break either up or down but not ultimately doing so.
The problem is that gold has been forming a large "triangle correction pattern". Such patterns are notorious for being money-losers as technical traders buy or sell the respective false break-out.
The good news is the pattern is nearing a resolution as it approaches the apex of the triangle. Soon there will be a break-out which this time will not be false. That means we should soon know where gold is going, and as far as the Wizard is concerned that direction is up.
Technical limitations
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