GOLD - Bear Flag forming with Volume contraction + 78.6 fib
- The gold bug within me is desperately trying to tell me this pattern is not on my screen but the more I look at the technical's the more it seems inevitable... we may be going down further
- Bear flag pattern confined by two (not perfect) parallel trend lines
- Clear volume contraction during the formation of the pattern signalling a breakout soon to come
- Clear rejection of 78.6 Fib retracement of previous bearish move
- Bearish move prior to the patterns formation gives me further evidence that this is a continuation pattern to the downside
- For the pattern to be validated we would need to see a clear expansion of volume as price breaks the lower ascending trend support line of the pattern
- If price were to advance again further beyond the upper trend resistance of the pattern then it would be invalidated
- Bear flag pattern confined by two (not perfect) parallel trend lines
- Clear volume contraction during the formation of the pattern signalling a breakout soon to come
- Clear rejection of 78.6 Fib retracement of previous bearish move
- Bearish move prior to the patterns formation gives me further evidence that this is a continuation pattern to the downside
- For the pattern to be validated we would need to see a clear expansion of volume as price breaks the lower ascending trend support line of the pattern
- If price were to advance again further beyond the upper trend resistance of the pattern then it would be invalidated