Descending Triangle - A text book continuation Pattern.
Gold prices have formed a Descending triangle - a pattern with bearish bias.
Prices have very much respected the sloped line from where it has moved downwards and horizontal line from where they have bounced.
so assuming - if the textbook pattern is successful then here is what I think it could do...
If price breaks the horizontal support line, we could see 1103 / 1104 or conservative estimate of 1108 / 1109.
If pattern doesn't break horizontal line or there is no follow through after the break - price may retrace back from horizontal line to 1134 / 36.
The failure of descending triangle also results in strong upswing - so in this case prices may go to 1148 level.
But again, everything depends on PA thats happening around support, apex, top, bottom so please trade with caution when it comes to this pattern.
Prices have very much respected the sloped line from where it has moved downwards and horizontal line from where they have bounced.
so assuming - if the textbook pattern is successful then here is what I think it could do...
If price breaks the horizontal support line, we could see 1103 / 1104 or conservative estimate of 1108 / 1109.
If pattern doesn't break horizontal line or there is no follow through after the break - price may retrace back from horizontal line to 1134 / 36.
The failure of descending triangle also results in strong upswing - so in this case prices may go to 1148 level.
But again, everything depends on PA thats happening around support, apex, top, bottom so please trade with caution when it comes to this pattern.