GOLD Sell Below 1285 CMP
1287Stop @ 1300 TGT 1265 – 1245 – 1217
A
Symmetrical Continuation Triangle (Bearish) is considered a bearish signal,
indicating that the current downtrend may continue.
Description
A
Symmetrical Continuation Triangle (Bearish) shows two converging trendlines,
the lower one is ascending, the upper one is descending. The formation occurs
because prices are reaching both lower highs and higher lows. The pattern will
display two highs touching the upper (descending) trendline and two lows
touching the lower (ascending) trendline. This pattern is confirmed when the
price breaks out of the triangle formation to close below the lower (ascending)
trendline.
Target Price
The
target price provides an important indication about the potential price move
that this pattern indicates. Consider whether the target price for this pattern
is sufficient to provide adequate returns after your costs (such as
commissions) have been taken into account. A good rule of thumb is that the
target price must indicate a potential return of greater than 5% before a
pattern should be considered useful. However you must consider the current
price and the volume of shares you intend to trade. Also, check that the target
price has not already been achieved.
Gold is forming Symmetrical triangle pattern formation from the
high of 1331 and support of 1268 and after it enter in the range bound, where
it made lower top and higher bottom formation. It’s nearing the lower support level
of 1285 and sustain below 1285 on closing basis it will give a confirmation of
the breakdown of the triangle. Height of the triangle comes to 68 points (1331 –
1268) and calculation the target from the breakdown point of 1285 (1285 -68 =
1217) expected target comes to 1217$ in near to medium term.
