Gold continues to trade within the triangle after the top at 1800$. This sideways movement is most probably a correction due to the overlapping pattern of the price movement. The most important price level that we should keep our eyes on is the 1700$ level. If prices move above that level, it is most probable that prices will rally towards 1800$ again. That price level will be another strong test for the up trend. We believe that given some time, Gold we rally past those resistance levels and reach above 2000$. The expected upward move however could delay. Resistance at 1685-96$ has proven twice too strong for buyers to overcome. Therefore we might see a down move towards the lower side of the triangle and the 1600-20$ price level. This could be our last chance to buy ‘cheap’. Trying to guess a bottom however could prove too risky and its advised to better wait for a .
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A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility.