From the chart, there has been an increase in gold in a close-knit candlestick pattern, with it increasing value.
This has caused a bearish flag to arise.
This is recognised due to:
1. quick increase to reach the basis of the flag.
2. once it was reached began forming an upwards flag shape with close-knit candlestick high/ low closes.
3. once the flag lines (orange) got closer together, there is an expected bear break out due to it being a rising flag.
4. This is also backed due to the reduced volume once the flag is reaching a close.
5. as it can be seen, the break out downwards should see the price of gold to begin to slowly fall.
However, this is not the case lately due to today's actions by the Dow in response to Trump's tweets about China.
Nonetheless, if such didn't occur this should see the XAUUSD to fall lower to reach 2nd support, leading to either consolidation or a bounce off support to bring the price of gold back up. If this did not occur gold prices will be in a downtrend.
Due to Trumps recent tweets and fears of a recession due to the inverted bond yields, this may see gold prices to continue to rise upwards breaching resistance and being able to surge past $1580.
This is an example of a bearish flag and can be used to analysis all other shares, crypto's and commodities, if probable analysis is completed.
This has caused a bearish flag to arise.
This is recognised due to:
1. quick increase to reach the basis of the flag.
2. once it was reached began forming an upwards flag shape with close-knit candlestick high/ low closes.
3. once the flag lines (orange) got closer together, there is an expected bear break out due to it being a rising flag.
4. This is also backed due to the reduced volume once the flag is reaching a close.
5. as it can be seen, the break out downwards should see the price of gold to begin to slowly fall.
However, this is not the case lately due to today's actions by the Dow in response to Trump's tweets about China.
Nonetheless, if such didn't occur this should see the XAUUSD to fall lower to reach 2nd support, leading to either consolidation or a bounce off support to bring the price of gold back up. If this did not occur gold prices will be in a downtrend.
Due to Trumps recent tweets and fears of a recession due to the inverted bond yields, this may see gold prices to continue to rise upwards breaching resistance and being able to surge past $1580.
This is an example of a bearish flag and can be used to analysis all other shares, crypto's and commodities, if probable analysis is completed.