GOLD (XAU/USD) | Breakout Confirmation Areas!
Hi,
Gold price approaching a Triangle tip. This is not a perfect triangle because of asymmetric touches between the top and bottom trendlines but hopefully, you will understand my point and my point is - triangle tip may release volatility to the breakout direction.
Triangle has two breakout opportunities. Suprise-surprise, up and down but at the moment, those marked breakout opportunities get confirmed also with other price action criteria. So, I would like to share my simplified bias if the breakout has occurred.
BULLISH BREAKOUT
We need 4H or Daily candle close above the upper green trendline, inside or above the marked green area. This is a Triangle upper trendline, plus we can consider it also as a counter-trendline because the recent bigger trend is upwards. So, if this trendline breaks then the bigger trend starts to work to our favor and the climb may continue to the higher levels.
There is also round number 1,500 and if we get a candle close above the trendline then we get 2 in 1 situation - break above the trendline (breakout upwards outside the triangle) and break above the psychological number 1,500.
So, wait for a candle close inside or above the green area, wait for a retest and the first target is around 2012 low, price 1530-1530.
BEARISH BREAKOUT
Since the beginning of September the short-, mid-term trend is downwards. We have clean lower lows and lower highs and if the red trendline gets cracked then it will "drop" to the lower prices.
~1480 (light-blue horizontal line) has held the price multiple times and if we get a candle close (4H or Daily) below the triangle then it is also cracked and it may start to fall around 1,450. Breakout downwards is supported by EMA Death Crosses in 4H TF.
So, wait for a candle close inside the red area, wait for a retest and the first target should be around 1,450!
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
Gold price approaching a Triangle tip. This is not a perfect triangle because of asymmetric touches between the top and bottom trendlines but hopefully, you will understand my point and my point is - triangle tip may release volatility to the breakout direction.
Triangle has two breakout opportunities. Suprise-surprise, up and down but at the moment, those marked breakout opportunities get confirmed also with other price action criteria. So, I would like to share my simplified bias if the breakout has occurred.
BULLISH BREAKOUT
We need 4H or Daily candle close above the upper green trendline, inside or above the marked green area. This is a Triangle upper trendline, plus we can consider it also as a counter-trendline because the recent bigger trend is upwards. So, if this trendline breaks then the bigger trend starts to work to our favor and the climb may continue to the higher levels.
There is also round number 1,500 and if we get a candle close above the trendline then we get 2 in 1 situation - break above the trendline (breakout upwards outside the triangle) and break above the psychological number 1,500.
So, wait for a candle close inside or above the green area, wait for a retest and the first target is around 2012 low, price 1530-1530.
BEARISH BREAKOUT
Since the beginning of September the short-, mid-term trend is downwards. We have clean lower lows and lower highs and if the red trendline gets cracked then it will "drop" to the lower prices.
~1480 (light-blue horizontal line) has held the price multiple times and if we get a candle close (4H or Daily) below the triangle then it is also cracked and it may start to fall around 1,450. Breakout downwards is supported by EMA Death Crosses in 4H TF.
So, wait for a candle close inside the red area, wait for a retest and the first target should be around 1,450!
If it was helpful then take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
Penafian
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