Gold (XAUUSD) - Prices consolidated within the pennant

Gold (XAUUSD) - Prices consolidated within the pennant

Namita Khurana
12 Jul 2019 06:13 PM
Analysing the daily chart of gold prices, we observe that the price action is forming a pennant, a symmetrical triangle formed when there is a large movement in the price action, called the flagpole, followed by a consolidation period with converging trend lines. The pattern started its formation from 1340-mark with the flag pole continuing till the 1435-mark followed by the pennant with the price action consolidating within 1390-mark and 1435-mark connected by the upper trend line and lower trend line as shown in the chart. A pennant is a continuation pattern followed by a breakout of the price action in the same direction as the initial large movement.

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