Strong chance XAUUSD has broken out of this bullish pattern
XAUUSD printed a 3 week bullish continuation pattern
— Soh tiong hum (@Sohtionghum) March 1, 2016
This is how it looks like. If you don’t see it, here it is again.
Because it is triangular, it is also called a bullish pennant but importantly whatever the name is, traders should note that
- it is expected to be bullish continuation
- to look out for break of resistance level/line
- that 3-week consolidation is fuel for the next leg up
3 reasons that support XAUUSD has broken out
Based on trend line study, the 3-week consolidation is broken. Although XAUUSD is now resisted at next level which is previous high, we can see that consolidation zone to become support.
Ok this this is not a good enough reason yet. Today is Friday so there is a good chance to see a week close but really I jumped the gun. However unless higher powers slam XAUUSD below 1237, this bullish condition is likely to meet.
Banking on Reason #2 but also pending closing price action tonight. Do note that based on Reason #2 also for weekly chart, 1237 could become support if a throwback shows up.