GOLD - Desc Broadening Wedge pattern, breakout or rejection?...
- Gold has been forming within a Descending Broadening wedge pattern for quite some time now
- This is an inherently bullish pattern characterised by two descending trend-lines moving away from each other
- Price has now reached the upper trend-line resistance once more
- We could either:
1. Form rejection here and move back down to 1217/1200 strong support or even lower possibly
2. Breakout to the upside
****
-In order to confirm a breakout of this pattern we would need to a daily close above the mentioned descending trend-line resistance
- As well as this the 100 EMA would need to be broken above, this moving average line is conveniently converging with the trend-line resistance
- My personal bias on this CFD is for a breakout to the upside, we have already seen the 1200 Psychological level retested in conjunction with the lower trend-line support and the 50 Fib retracement level (16 Aug low - 26 Oct high).
- As well as this USD economic releases yesterday all came in under expectations, and there are rumours circling the fed may choose not to hike rates as many times as they have said previously
THIS IS NOT TRADE ADVICE NOR A TRADE CALL
- This is an inherently bullish pattern characterised by two descending trend-lines moving away from each other
- Price has now reached the upper trend-line resistance once more
- We could either:
1. Form rejection here and move back down to 1217/1200 strong support or even lower possibly
2. Breakout to the upside
****
-In order to confirm a breakout of this pattern we would need to a daily close above the mentioned descending trend-line resistance
- As well as this the 100 EMA would need to be broken above, this moving average line is conveniently converging with the trend-line resistance
- My personal bias on this CFD is for a breakout to the upside, we have already seen the 1200 Psychological level retested in conjunction with the lower trend-line support and the 50 Fib retracement level (16 Aug low - 26 Oct high).
- As well as this USD economic releases yesterday all came in under expectations, and there are rumours circling the fed may choose not to hike rates as many times as they have said previously
THIS IS NOT TRADE ADVICE NOR A TRADE CALL