Gold and black Gold locked inside of the triangle patterns [Video]
|In today’s analysis, I will show you three great trading occasions involving a very reliable trading pattern – the triangle. There are three main variations of this pattern: symmetric, ascending and descending. In this piece, I will present the first two.
Let’s start with the ascending triangle. This is a formation with a horizontal resistance and a dynamic support. It is usually present in an uptrend and promotes a breakout to the upside. We can see this formation on Brent Oil. The problem for bulls can be that the price just bounced from a horizontal resistance and is not putting heavy pressure on support. Don’t forget that patterns can be denied and that can also present a great trading opportunity. In this case, if the price breaks the lower line of this formation, it will give us a nice sell signal coming from the pattern denial. On the other hand, a breakout of the horizontal resistance, will give us a signal to go long.
Now the symmetric triangle; the first one can be spotted on the EURUSD. The formation started at the end of March and has been blocking us from seeing a more directional trend since then. Most recently, the price tested the lower line of this formation. If you like trading in the range (bounce from the support and resistance), this is a nice occasion to go long, hoping for a movement aiming towards the upper line of the triangle. Sellers, before opening a position, could wait for the breakout of the lower line of the triangle, which currently seems less likely to happen.
A symmetric triangle can be also spotted on Gold. Here, with the current macro situation around the globe, thee breakouts to the upside seems more probable. Sentiment stays bullish as long as the price stays above the 1680 USD/oz, which is the ultimate support for this precious metal.
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