XAUUSD ( Gold ) 1H chart Ascending triangle
Gold is forming an Ascending triangle on a 1H chart. The resistance of the pattern is aligning with the recent low points in the price creating a strong resistance range.
The development here is important. If the price breaks the resistance, this can fulful the chart pattern and also break above the resistance range, which can push the price up. If the price breaks bellow the pattern and the resistance range, then it can continue down towards a new major low point.
Additional confluences to monitor for: 20, 50 and 200 SMAs
Currently, the 20, 50 and 200 SMAs are aligned to indicate a down trend. The price is testing the 50 right now. If it drops down to break below the chart pattern, this will also be a rejection from the 50 and a drop below the 20. This is a further strong confirmation for a general drop.
If the price breaks above the chart pattern, what you want to see is the 50 moving below the price and crossing with the 20 to produce a bullish cross
The development here is important. If the price breaks the resistance, this can fulful the chart pattern and also break above the resistance range, which can push the price up. If the price breaks bellow the pattern and the resistance range, then it can continue down towards a new major low point.
Additional confluences to monitor for: 20, 50 and 200 SMAs
Currently, the 20, 50 and 200 SMAs are aligned to indicate a down trend. The price is testing the 50 right now. If it drops down to break below the chart pattern, this will also be a rejection from the 50 and a drop below the 20. This is a further strong confirmation for a general drop.
If the price breaks above the chart pattern, what you want to see is the 50 moving below the price and crossing with the 20 to produce a bullish cross
Trade closed manually:
Price produced some movement to the down side after the breakout but less then expected. After that it continued with a recovery and consoldiation