GOLD'S RISING TRIANGLE OR BEAR FLAG?
Updated
It's been a tricky trading 10 day period for those who they were trading gold.We had a lot of catalysts which we can say up to this point that they haven't moved the safe haven asset of gold as expected.
TECHNICALLY
Gold validated again the ascending channel and we can see that is well respected also.
Gold is currenlty in consolidation mode forming a rising triangle or a bear flag.Rising triangle according to Thomas Bulkowski,top trader on chart patterns with 30 years experience,breaks 62% upwards.
Bear flag in an uptrend is not a continuation pattern but a reversal pattern.
There are two rising triangles at the chart,the previous ABC triangle broke upwards and successfully reached it's projected target (blue dotted line)
We can project the possible targets by copying the vertical part of the triangle AB(or A'B') and the upward sloping side BC(or B'C') as it's shown at the chart.(Blue dotted lines)
We can see that the long target T1 which occurs as we said above it coincides with the previous highs and the short target T2 it coincides with the 200EMA and the 61,8% Fibonacci retracement.
There are two possible trades,we are long becuase of the possible news and risk increase due to G-7 meeting in the weekend and because statistically rising triangles break upwards.
If you are long meaning you see this formation as a rising triangle wait a re-test of ascending line to take the trade for maximum profits and increasing your P/L ratio,if you want to take the short trade meaning you see this formation as a bear flag any level near the horizontal line will maximaze your profits and increase your P/L ratio.It's your choice!
POSSIBLE TRADES
LONG TRADE
TARGET T1 AT 1290-1295$ AREA
STOP LOSS AT 1235$ AREA UNDER 200EMA AND 61,8% FIB RETRACEMENT
SHORT TRADE
TARGET T2 AT 12301235$ AREA
STOP LOSS AT 1275$
THANKS FOR SUPPORT
HAPPY TRADING!
TECHNICALLY
Gold validated again the ascending channel and we can see that is well respected also.
Gold is currenlty in consolidation mode forming a rising triangle or a bear flag.Rising triangle according to Thomas Bulkowski,top trader on chart patterns with 30 years experience,breaks 62% upwards.
Bear flag in an uptrend is not a continuation pattern but a reversal pattern.
There are two rising triangles at the chart,the previous ABC triangle broke upwards and successfully reached it's projected target (blue dotted line)
We can project the possible targets by copying the vertical part of the triangle AB(or A'B') and the upward sloping side BC(or B'C') as it's shown at the chart.(Blue dotted lines)
We can see that the long target T1 which occurs as we said above it coincides with the previous highs and the short target T2 it coincides with the 200EMA and the 61,8% Fibonacci retracement.
There are two possible trades,we are long becuase of the possible news and risk increase due to G-7 meeting in the weekend and because statistically rising triangles break upwards.
If you are long meaning you see this formation as a rising triangle wait a re-test of ascending line to take the trade for maximum profits and increasing your P/L ratio,if you want to take the short trade meaning you see this formation as a bear flag any level near the horizontal line will maximaze your profits and increase your P/L ratio.It's your choice!
POSSIBLE TRADES
LONG TRADE
TARGET T1 AT 1290-1295$ AREA
STOP LOSS AT 1235$ AREA UNDER 200EMA AND 61,8% FIB RETRACEMENT
SHORT TRADE
TARGET T2 AT 12301235$ AREA
STOP LOSS AT 1275$
THANKS FOR SUPPORT
HAPPY TRADING!
Trade active
Note
Unless the A'C' side of the triangle is validated we consider this as a false breakout except we see a serious volume.Trade closed: target reached
Target reached price exactly at the target...Price propably not much of an upside as we have already CCI,RSI,MACD bearish divergence and it looks like we are going to make a double top formation..Thanks for support.
Keep following for some more profits..
Note
GUESS WHAT??WE HAD A DOUBLE TOP PATTERN AS I STATED ON MY PREVIOUS COMMENT ABOVE...
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