Markets move in three trends -up (bullish), down (bearish) orsideways (neutral). The past several weeks have seen the gold marketshift into a sideways or neutral trend. A range trading play is a fairly common technical strategy that short-term traders employ when choppy or sideways conditions are seen.
What are the key levels for short-term gold traders to monitor near term? Triangle support and resistance, seen on Figure 1 below. The range top and bottom areas have been narrowing in recent days. Resistance points are seen at the May 7 daily high at $1,315 and then the May 14 daily high at $1,309.20. Support points are seen at the May 2 low at $1,272 and then May 12 low at $1,277.70.
