The resurgence in precious metals in last week's trading may provide a stable footing for a continuation rally in Gold futures in the week ahead. Despite the volatility in the sector, Gold has managed to form an orderly Triangle chart pattern on the hourly time interval. The market has formed a base price support near the $1,330 per ounce level, and managed to break out of a resistance zone during Monday's session.
This resistance level demarcates the top of the Triangle chart pattern, which was breached at $1,335 to trigger a Breakout signal on the Autochartist platform and carries a high momentum reading. Ideally the market would continue pushing higher without pulling back below the breakout level, providing confirmation that a continuation rally can ensue.
The projected price target forecast from the Triangle breakout points to a minimum price rise to the $1,346 per ounce level, with the upper end of the range at $1,358 to complete the pattern. If the target is reached, the $1,330 support now established may prove to be a new key support level for the market to pivot from and potentially drive to much higher price levels. A failure of that level would be seen as a bearish development from this point forward.
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