Gold futures continue to mount their assault on major technical resistance at $1,550 per ounce, a price level which has repelled several rallies over the last several weeks. Sell-offs from this resistance level appear to be growing shallower in recent trading action, and the market has now consolidated into a narrow trading range to form a Triangle chart pattern on the intra-day time intervals. This Triangle, shown here on the 15-minute candlestick chart, is creating a pivot zone within a $10 price range just below the $1,550 resistance. The Triangle is very well formed but still fairly early in its development, and gold may trade inside the range going into Wednesday’s session, with a retest of support at $1,544 possible in the near term. However, a rally back above trend line resistance at $1,548 could make for a high-momentum breakout from this short term pattern while also pushing the market above the longer term resistance. If this occurs, it may prove there is enough strength for a sustained run above this level and a renewal of the major uptrend. A breach of the $1,544 support level would suggest continued weakness in the market and reduce the likelihood of an upside breakout for now.

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