Gold Coiling For a Breakout

Over the past two months, February gold has been rotating within a 11469-to-12390 balance range. However, over the past four trading days, gold was confined to a relatively tight 12054-to-12233 balance range. When a volatile market such as gold is confined to such a tight balance for several days, a significant move usually follows.

If the market gains acceptance above the four-day balance, it may test the 12390-to-12430 gap above. If the market gains acceptance below the four-day balance, the first reference below would be 11878.

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