The bull pennant is a bullish continuation pattern that signals the extension of the uptrend after the period of consolidation is over. Unlike the flag where the price action consolidates within the two parallel lines, the pennant uses two converging lines for consolidation until the breakout occurs.
To identify a bullish pennant , you'll need to watch for two elements. Firstly, a pronounced upward movement beforehand known as the 'pole'. Secondly, a price consolidation that forms a roughly symmetrical triangle with its support and resistance lines
Gold is currently trading at $1759, the highest level since August 18 amid US dollar sell-off. The next resistance level for XAUUSD to break is $1770. It would open the path to $1800 psychological mark.
On the downside $1755 and $1745 would be the next target for the bears.
A convincing break below would accelerate gold slide to $1730, the previous month's high.
FUNDAMENTALS will play a big role these following days
To identify a bullish pennant , you'll need to watch for two elements. Firstly, a pronounced upward movement beforehand known as the 'pole'. Secondly, a price consolidation that forms a roughly symmetrical triangle with its support and resistance lines
Gold is currently trading at $1759, the highest level since August 18 amid US dollar sell-off. The next resistance level for XAUUSD to break is $1770. It would open the path to $1800 psychological mark.
On the downside $1755 and $1745 would be the next target for the bears.
A convincing break below would accelerate gold slide to $1730, the previous month's high.
FUNDAMENTALS will play a big role these following days