“¢ Gold has been oscillating between two converging trend-lines over the past three trading session, forming a symmetrical triangle on hourly charts.
“¢ Given the recent upsurge since last Friday, the mentioned triangle constituted towards the formation of a bullish continuation – Pennant chart pattern.
However, overbought conditions on the daily chart seemed to be the only factor holding investors from placing any aggressive bullish bets ahead of Friday’s important release of the closely watched US monthly jobs report – popularly known as NFP.
Meanwhile, the fact that the precious metal has managed to hold above its important intraday/daily moving averages – 50, 100 & 200-period SMAs, add credence to the constructive outlook and support prospects for additional near-term gains.
Hence, a convincing break through the triangle resistance, currently near the $1337-38 region, should now be seen as a key trigger for bullish traders and set the stage for an extension of the positive momentum, even beyond yearly tops around the $1346-47 area.
Gold 1-hourly chart
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