Did Gold form a symmetrical triangle?
The symmetrical triangle breakout
The symmetrical triangle pattern is a technical analysis formation characterized by two converging trendlines that connect a series of lower highs and higher lows, forming a symmetrical, triangular shape on the chart.
This pattern indicates a period of consolidation, reflecting a balance between buyers and sellers, with neither side currently dominating price movement. It is regarded as a potential indicator to a breakout, with the eventual direction commonly determined after the price breaches one of the trendlines. Instead, the direction of the breakout determines the market's next move.
The 4-hour Gold chart recently confirmed a symmetrical triangle pattern, a period of consolidation where buyers and sellers are in a temporary equilibrium, the price breaches a trendline, the direction of that move typically dictates the market's next primary trend.
The technical targets for this pattern are calculated by measuring the height of the triangle’s base and projecting it from the breakout point:
Base Height: 5,594 - 4,403 = 1,191 USD
Breakout Level: 4,917 USD
Price Target: 6,108 USD per ounce.
Author
Hany Saleeb
Independent Analyst
Hany Saleeb is a highly experienced Senior Treasurer. With over a decade of experience in treasury, served as Head of Treasury at BM in France and head of research in Sinai Securities.
