Gold reached its highest price ever on May 20 this year, hitting an impressive 2450.0 before entering a decline. Following the formation of this all-time high, the price action formed lower highs, while a well-defended demand zone at 2304.0 established equal lows. This pattern led to the creation of a descending triangle over the past two months. However, a recent price surge from the demand zone has catalyzed a bullish breakout from the descending triangle, indicating a potential shift in market sentiment.
The daily chart reveals the presence of a double bottom pattern, reinforcing the bullish reversal. This formation typically signals a robust buying interest, reflecting two failed attempts to push prices lower. Moreover, the Bull and Bear Power indicator shows that buyers are currently in control, providing further evidence of the strengthening bullish momentum. The recent price action above the Moving Average periods of 9 and 21 on both the daily and 4-hour charts underscores the positive outlook.
The breakout from the descending triangle is significant, as it suggests a shift from the previous bearish trend to a potential long-term bullish trend. The current market conditions indicate that gold is poised to challenge and possibly break its all-time high of 2450.0. Traders and investors closely monitor these developments, especially those following the best forex signals from Telegram, which can offer timely insights and updates on market movements.
Gold Short Term Trend: Bullish
As Gold continues to climb, the focus will be on whether the metal can sustain its upward trajectory and surpass previous resistance levels. The combination of technical patterns, such as the double bottom and the ascending momentum indicated by the Bull and Bear Power, supports the likelihood of further price increases. In conclusion, gold’s recent breakout from the descending triangle and its strong technical indicators suggest that a new all-time high may soon be on the horizon.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results
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