On this 2-hour chart of Gold Spot (XAU/USD), we’re nestled in a bullish trend. The price has consistently found support above the 21 EMA, which is draped above the 200-day SMA, underscoring the bullish strength. The recent price action shows a tightening consolidation, forming what could be interpreted as a pennant or a flag – classic continuation patterns in an uptrend.
Our eyes are set on the weekly resistance around $2,195.15 as the initial target. This consolidation phase could be the springboard needed for the price to test and potentially break through that resistance level. For entries, traders might look for a breakout above the pennant, with confirmation being a strong green candle clear of the pattern, or a bounce off the 21 EMA if the price dips back to that level.
Setting a stop-loss below the recent swing low or the 21 EMA could protect the position from unexpected reversals. Stay sharp and monitor the breakout for a commitment to the upside.
Our eyes are set on the weekly resistance around $2,195.15 as the initial target. This consolidation phase could be the springboard needed for the price to test and potentially break through that resistance level. For entries, traders might look for a breakout above the pennant, with confirmation being a strong green candle clear of the pattern, or a bounce off the 21 EMA if the price dips back to that level.
Setting a stop-loss below the recent swing low or the 21 EMA could protect the position from unexpected reversals. Stay sharp and monitor the breakout for a commitment to the upside.
Sheena Lynne