Gold is coiling within a bull pennant pattern on the hourly, pointing to the potential for a topside break and eventual retest of the record high at $3674.80.
Should we close above pennant resistance, longs could be established on the break with a stop beneath for protection. $3656 looms as an initial target, given the price tagged it on no fewer than 11 occasions over the past week but only closed above it once—when the record high was set. If the price can successfully push above $3660 and hold there, it may encourage additional bulls to join in the move targeting $3674.80.
An alternative setup would be to wait for a potential break and close above $3660 before initiating longs, allowing for a stop to be placed beneath for protection while targeting the record highs.
Momentum indicators are providing an inconclusive message on directional risks with RSI (14) and MACD sitting in neutral territory. More emphasis should therefore be placed on price action for guidance rather than adopting a specific bias.
Good luck!
DS
Should we close above pennant resistance, longs could be established on the break with a stop beneath for protection. $3656 looms as an initial target, given the price tagged it on no fewer than 11 occasions over the past week but only closed above it once—when the record high was set. If the price can successfully push above $3660 and hold there, it may encourage additional bulls to join in the move targeting $3674.80.
An alternative setup would be to wait for a potential break and close above $3660 before initiating longs, allowing for a stop to be placed beneath for protection while targeting the record highs.
Momentum indicators are providing an inconclusive message on directional risks with RSI (14) and MACD sitting in neutral territory. More emphasis should therefore be placed on price action for guidance rather than adopting a specific bias.
Good luck!
DS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.