Gold Will Likely Rebound from 1307 - 1290

Gold has almost reached the resistance trendline of the possible pennant>>> and if my analysis that Gold really is forming a pennant is correct then soon there should be a move to the upside.

In such a scenario the movement between the trendlines should continue for another few weeks, after which there will be an impulse move to the upside towards the limit of the wedge (the green trendlines) which is at 1423.

In case Gold breaks out to the downside it’s possible to continue dropping towards 1200 or even below that level.

We don’t know which scenario the market will pick, which is why we should be very careful while Gold is in the zone around 1307 – 1290 and we should wait for further development before we open long positions.