The yellow metal has continued to respect the support zone of the previously described descending triangle pattern. However, on Tuesday the 55 and 100-hour simple moving averages near 1,780.00 started to provide resistance. In the meantime, the 200-hour SMA had reached the triangle.
The price has been trading between a support zone at 1,770.00/1,775.00 and a descending trend line since June 21. In theory, the commodity price would trade in the pattern until a break out from it occurs.
If the price breaks out to the upside, the 1,800.00 marks would be reached. On the other hand, a passing of the 1,770.00/1,775.00 zone could result in a decline to the 1,750.00 marks.
