© Dukascopy Bank SA
After touching the Aug high at 1,170 the bullion resumed its long term downward trend. However, bears were unable to send the price below 1,117 for two consecutive times on Aug 26 and Sep 4. As a result, the descending triangle pattern was formed. On the one hand, statistically 64% of similar patterns are confirmed to the south. On the other hand, another failure of bearish market participants may encourage bulls for a rally in the foreseeable future. This case is supported by daily technical indicators at the moment, which are giving signals to buy gold in the next 24 hours. In addition, the bullish (53%) share of open positions refuses to decline below the 50% threshold.
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