Fellow Traders, I marked the resistance lines I identified with red, and I identified a rising wedge pattern in white color on the chart. Behind the lines, gold has been accumulating a strong demand within the wedge. The chart pattern itself is a kind that tends to break downwards. In general, a rising wedge is a bearish setup. However, general rules don't work as much in trading as they do in other areas like biology. There's significant statistics for rising wedges to break in either direction.
With gold's growing demand and valuation, I think
the rising wedge could break upwards and trigger an elevated rally.
Or if it breaks down, as this pattern usually does, the wedge allows a steep bounce to retest the wedge before any reversal to bearish.
I can see a conflicting trend and chart pattern, but my two cents say a profitable long position more likely.
- Essa
Trade closed: target reached
⋅
XAU fulfilled the target price. I closed the XAUUSD long position in profit. Happy trading, mates!
Witnessing your transition into sharing your own ideas is truly inspiring. Best of luck on this new venture, my friend! While I'd like to believe I've shared valuable insights, I'm equally eager to learn from your unique perspectives. 😇🙏
Darthessa
⋅
@Elysian_Mind, Thank you. You mentioned the $1970 level in the chat, too. I agree with your view. Did you use the same trendlines to predict this level or coincide?