Small pullback shows strength
Only a small withdrawal was reached after the record high of $ 2,943 five days ago. And then there was an attempt to break out above that High last Friday before the sellers took the check back and the price of gold drove lower. The day ended in a clear bearish position near the lows of the day and had established a possible double top pattern.
A clear decline of a second High is expected to lead to further weakness. But given the contemporary bullish price action, the bearish implications of Friday’s trading activity have decreased. Instead, gold can make a new attempt to go higher for a deeper withdrawal and it can have some success. Anyway, indications in force would be needed to indicate that gold can go higher.
Bull Pennant Forms
Since the new record high was hit last week, a bull weight pattern has been formed on the daily graph for gold. It takes the shape of a small symmetrical triangle. Today’s high price confirms the upper boundary line of the pattern, because there are three points that touch the line. That is why an increase above the high high 2,937 High would offer a bullish signal, but with less trust than a decisive outbreak above the peak of last Friday of $ 2,940.
A persistent bull -breakout from the pennant would confirm the bullish reversal after an attempt to break out last Friday. That is why a bull loss can have more strength, given the failure of the demolition. Failed patterns can lead to sharp movements in the opposite direction. Nevertheless, gold could continue to consolidate in the pattern before it is ready to move.
Counters the bearish indications last week
It is interesting to note that a similar situation would take place at an outbreak above $ 2,943 High, which is also a weekly high. Goud led a potential Bearish shooter candlestick pattern last week. It shows a weekly final race in the lower third part of the price range of the week. Although the pattern of a week must be confirmed by a breakdown below the low point of last week, it nevertheless shows sellers who are in charge and the potential for further Bearish price movements.
Look for a look in all the economic events of today Economic calendar.