Gold : A Bullish viewBullish Pennant Pattern is building :
If Gold gives a breakout above 63300 then it may touch 70000 n more.
If it goes below 61500 then upside will be restricted and a downside fall will start.
The Bullish Pennant Pattern:
The bullish pennant emerges post an uptrend, forming a small symmetrical triangle (the pennant) during consolidation. This pattern signifies a battle between bulls and bears, ultimately leading to a breakout, usually upward, signifying the continuation of the uptrend.
Components of the Bullish Pennant Pattern:
An Uptrend:A prerequisite for this pattern, characterized by higher highs and higher lows.
A Pennant: A small symmetrical triangle forming after the uptrend, indicating consolidation.
A Breakout: The essential phase, marking the continuation of the uptrend, often occurring upwards.
Trading the Bullish Pennant Pattern:
Psychology Behind Bullish Pennant:
A reflection of market consolidation after bullish momentum, highlighting the buyers' dominance.
Bullish Pennant vs. Bearish Pennant: Bullish pennants signal uptrend continuations, while bearish pennants suggest downtrend extensions.
Bullish Pennant vs. Bull Flag: Bull flags form after sharp rallies, while bullish pennants appear after extended uptrends, marked by converging trendlines.
Stop Loss Placement: Consider placing your stop loss at the pennant's resistance line for risk management.
Profit Target Setting: Customize your profit target, aligning with the pattern's flagpole height or a conservative approach, harmonizing with your risk management strategy.
Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.
Dear traders, If you like my work then do not forget to hit like and follow me, and guy's let me know what do you think about this idea in comment box, i would be love to reply all of you guy's.
Thankyou.
