GOLD - Bullish Pennant. Volume signalling break soon to come....
- As shown in the chart I believe a possible Bullish Pennant continuation pattern to be developing
- Typically with triangle/pennant/flag patterns volume contraction (declining) is a telltale sign that a breakout is likely soon.
- As can be seen on the chart, volume has been steadily decreasing with each higher low/lower high formed within the pattern
- A break of the upper descending trend resistance of the pattern would be needed to validate the pattern, WITH volume would validate the pattern
- If price were to break below the lower ascending trend support of the pattern WITH volume this would invalidate the pattern.
- Typically with triangle/pennant/flag patterns volume contraction (declining) is a telltale sign that a breakout is likely soon.
- As can be seen on the chart, volume has been steadily decreasing with each higher low/lower high formed within the pattern
- A break of the upper descending trend resistance of the pattern would be needed to validate the pattern, WITH volume would validate the pattern
- If price were to break below the lower ascending trend support of the pattern WITH volume this would invalidate the pattern.