The price action on the Gold chart has been tightly winding up over the last few daily sessions with price getting ready for a massive break out. On the daily chart we can see price has formed consecutive inside bars and is winding up like a coiling spring. Exactly like a spring, the longer the coiling and winding up goes on, normally the more powerful the breakout is when it finally occurs and that’s exactly what may be the case when price finally breaks out here.
Price overall on the Gold chart has been in a down-trend. There was a huge move lower after the market got smashed lower, but since then we have price in a holding pattern just consolidating. The best play now may be to sit on the sidelines until this pair shows it’s cards and breaks outs either higher or lower.
GOLD DAILY CHART | 6 JUNE 21013
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