29/5/2014 – The Gold triangle bursts!

May 29, 2014

FXTrader Paul, Gold, Trading

I maybe on my holidays in the highlands of Scotland but I had a chance to look at the odd chart.  Earlier this week I drew attention to the gold price coiling up into a tight triangle pattern (click this hyperlink to read that piece).

I hadn’t expected it to explode so soon but I see that it did that a couple of days back. Take a look at the chart below.

20140529 gold daily coil break second part

Its broken strongly south this week and headed back down towards the $1250 area. Keep an eye on it in case it continues down to the 2013 lows.

Trade well

Paul

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

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2 Comments on “29/5/2014 – The Gold triangle bursts!”

  1. george12345xx Says:

    It’s interesting that as soon as there is a downward push, the retail crowd starts going bullish. As at the end of Friday there were already 2.7 long FXCM retail traders for every short one. [And conversely there are 10 short retail traders for every long one on the SPX, as it continues to make all-time highs!]

    Like

    Reply

    • FXTraderPaul Says:

      That tells you all you need to know about uneducated retail traders. Always trying to pick tops and bottoms of markets. I prefer to be alert, watch how price action plays out, wait for the market to play its hand and either trade in that direction or stand aside completely.

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      Reply

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