GOLD - Bullish Broadening top + Retest of previous consolidation
- Gold has been very bearish as of recent, however may be running into some important support areas
- Firstly gold has fallen into a level which during the previous consolidation phase before breakout, acted as a very strong resistance area (~1209)
- Furthermore gold has touched/retested the upper descending trend-line of this mentioned consolidation phase
Broadening top pattern
- Gold may also be forming a broadening top pattern characterised by two trend-lines moving away from each other
- Once again the area of support that gold has come to land in on Friday is on the lower descending trend line of this pattern
- The upper trend-line of this would need to be broken to confirm the formation of this pattern therefore I am still sceptical
THIS IS NOT TRADE ADVICE NOR A TRADE CALL.
- Firstly gold has fallen into a level which during the previous consolidation phase before breakout, acted as a very strong resistance area (~1209)
- Furthermore gold has touched/retested the upper descending trend-line of this mentioned consolidation phase
Broadening top pattern
- Gold may also be forming a broadening top pattern characterised by two trend-lines moving away from each other
- Once again the area of support that gold has come to land in on Friday is on the lower descending trend line of this pattern
- The upper trend-line of this would need to be broken to confirm the formation of this pattern therefore I am still sceptical
THIS IS NOT TRADE ADVICE NOR A TRADE CALL.