Gold is above the key 233-day moving average and now testing the upper line of the descending triangle. Around 1830 will be crucial for the gold. This area does not only include the upper line of the triangle but Fibonacci %38.2 retracement level as well. Since June, the price rejected four times from this resistance. If gold can break this resistance and hold above it 1876 and 1923 levels can be targeted over a couple of months period.
But descending triangles usually break to the downside so another rejection means it might be a selling opportunity, at least to the lower line of the triangle. This is a major resistance and may not break or get rejected just in one day or one week. A bull trap is also a possibility so trades with precalculated entry and stop positions are advised to minimize the risks.
