Understanding the Technical Bullish Outlook
Technical analysis of gold also shows bullish prospects. Gold prices have charted an ascending widening wedge pattern since 2016, starting from a low of $1124.30. This pattern is often recognized for its expanding trend lines and suggests increasing volatility and bullish sentiment as price makes higher highs and lows.
Furthermore, another bullish pattern has emerged within this ascending expanding wedge pattern: the formation of an inverted head and shoulders pattern, often considered a reversal pattern indicating a transition from the market price reduction to price increase. The head of this pattern formed at $1622.20, with shoulders completed at $1673.30 and $1810.80.
The key aspect of this pattern is the break above the neckline at $2075 in March 2024, signaling a strong long-term breakout. This breakout is significant because gold prices have stabilized below the key pivot point of $2075 for several years. A successful breach above this level suggests a potential rally to $3000, marking the initial target set by the ascending expanding wedge pattern.
💵 SELL
XAUUSD
2365-2367💵
✔️TP 2355
✔️TP 2345
❌SL 2375
💵 BUY
XAUUSD
2340 - 2342💵
✔️TP 2350
✔️TP 2360
❌SL 2333
Furthermore, another bullish pattern has emerged within this ascending expanding wedge pattern: the formation of an inverted head and shoulders pattern, often considered a reversal pattern indicating a transition from the market price reduction to price increase. The head of this pattern formed at $1622.20, with shoulders completed at $1673.30 and $1810.80.
The key aspect of this pattern is the break above the neckline at $2075 in March 2024, signaling a strong long-term breakout. This breakout is significant because gold prices have stabilized below the key pivot point of $2075 for several years. A successful breach above this level suggests a potential rally to $3000, marking the initial target set by the ascending expanding wedge pattern.
💵 SELL
XAUUSD
2365-2367💵 ✔️TP 2355
✔️TP 2345
❌SL 2375
💵 BUY
XAUUSD
2340 - 2342💵 ✔️TP 2350
✔️TP 2360
❌SL 2333
