TheSignalyst

XAUUSD - GOLD Two Possible Scenarios

OANDA:XAUUSD   Gold Spot / U.S. Dollar
GOLD is trading inside a long-term ascending channel (in green)

Price was making higher highs and higher lows (in purple)
until price formed a double top pattern (in orange) around 1550 level which acts as a strong resistance and round number
price then broke the double top neckline downward breaking the last low as well giving us an early alert that the uptrend may have come to an end.

now price formed a descending triangle around our lower long-term green trendline .

Technically, descending triangles are trend-following bearish patterns. However, it can break either side.

here are the two possible scenarios:

1- price rejects the long-term green trendline and breaks the descending triangle upward (above 1510.0) to test the upper green trendline .

2- price breaks the long-term green trendline downward by breaking the descending triangle from the downside (below 1480.0) to confirm the start of a long-term downtrend

Let's wait for a break either side and act accordingly. Good Luck!
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