RLinda ! GOLD-> The formation of the bear flag, or...

Gold is trying to break above the 1879 level again. But a closer look reveals the possibility of a bearish pattern, called "Flag", which looks like a continuation of the move after the correction.

The gold stops the fall in the liquidity zone between 1879 and 1869, but there are many questions: no strong pullback up, the price forms an ascending range, which starts playing the role of a flag - this pattern is interpreted as a trend continuation pattern, i.e. the local target can be the range boundary, but in the mid term we should expect a break of the flag support (local ascending channel) and continuation of the fall.

I expect that in the nearest future the price after reaching the flag resistance can rollback to support 1879, but if the scenario is respected, the price can strengthen to 1900

Regards R. Linda!

Comment:

Bearish Flag pattern

Bear flag is a chart pattern that is often considered as a bearish reversal pattern in technical analysis of financial markets.

It is characterized by a downward channel with lower highs and lower lows, which forms after a downward price movement or downtrend.

The model is called a flag because it resembles a flag on a pole, with the downtrend acting as a pole and the channel as a flag. Traders tend to sell or short a security when price breaks below the lower trend line of the flag pattern, expecting the downtrend to continue
(Information and picture of the pattern taken from google)

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