How to keep up with the rhythm of triangle pattern consolidation

Nov 4

#XAUUSD XAUUSD GOLD

Gold prices stalled at higher levels yesterday, mainly due to Federal Reserve officials' cautious stance on a December rate cut, which boosted the dollar and dampened enthusiasm for gold's rise. Judging from the current trend, the market is in a converging triangle pattern. The daily MA5 is around 3987, and the MA10 is around 4021. It can be seen that the range between these two points is very small, indicating that the market is also preparing to break out and choose a major direction. Once the gold price breaks out of the triangle pattern and chooses a direction, the daily chart's trendline will widen. Therefore, the key resistance level to watch is 4020-4030, while the key support level is 3970-3960. The European session is expected to trade within a range in the short term. Before a successful breakout, pay attention to the resistance level of the middle band on the hourly and 4-hour charts at 3995-4000. If the price touches the resistance level on the first attempt and fails to break through, a small short position can be considered.

Nov 4

Trade active

Short selling has yielded good returns, but the market remains in a stalemate between bulls and bears, perhaps lacking information sufficient to trigger market volatility. This could be tomorrow's ADP data or the NFP data that may be released this week. Until the market makes a clear choice, one can continue to try high-sell, low-buy trading.