XAU/USD 4H Chart: Descending Triangle

Gold is poised for more price gains, as the metal succeeded in confirming the descending triangle it traded in until early April. Along with crossing the pattern's upper edge, XAU/USD eroded the 200-period SMA and the monthly pivot point at 1,240 and 1,241, respectively. This fact is boosting the future outlook even more. Although short-term dips are not off the table, they are likely to be shallow. In the weeks to come the bullion should continue aiming at the recently-reached March peak at 1,284.56. The second major supply zone lies at 1,307 (2015 high). Over the last two days the number of short SWFX positions soared to 67%, but too pessimistic current views may eventually begin backing the bulls.