DeGRAM | GOLD returned to the channel and formed a wedge

GOLD in one big candle confidently returned to the channel frames.

Before reaching the resistance the price volatility decreased.

The price chart formed an ascending wedge, which is a reversal pattern.

We believe that the pullback will take place after GOLD tests the resistance again.


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Comment:

When trying to break through the upper boundary of the wedge, the volatility of the movement decreases, which cannot be said about the lower boundary, which the price has recently broken through.

After the breakthrough GOLD returned to the wedge, but having met the psychological resistance of 2300 it started to decline again.

Now the price is near the dynamic support, we think that the chart is ready for a pullback.

Comment:

GOLD came out of the ascending wedge, volatility increased.

The chart broke the lower boundary of the wedge with a big red candle and is now also trying to break the upper boundary of the channel.

We think that XAUUSD will fall to the 38% retracement level after the channel breakout.