Over the past month, June gold has been trading within a 11822-to-12245 balance range. However, over the past two weeks, the daily ranges have been getting pinched smaller and smaller, forming a triangle formation. The relatively tight range on Friday, April 17, 2015 sits in the apex of the formation, directly in the center of the one-month balance range. When a volatile market, such as gold, breaks from a triangle formation, a significant move usually follows.
If the market breaks from the triangle formation to the upside, there is a 12143-to-12179 gap above, but the 12245-balance-range high may be the destination.
If the market breaks from the triangle formation to the downside, the 11822-balance-range low could be the destination.
