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Symmetrical Triangle Pattern on Daily Chart of Gold as of 2020-02-16

Summary:
Gold prices have been moving sideways with ever-decreasing volatility after the rally at the end of the last year. As a result, a symmetrical triangle pattern has formed on the daily chart of the commodity. It is considered a continuation pattern, meaning that after the period of sideways movement prices are more likely to resume movement in the previous direction than to move in the opposite direction. In the present case, an upward breakout seems likely, especially considering that fundamentals were favorable to gold recently. On the present chart, the yellow lines show the triangle itself. For those who want to bent on a bullish breakout, the cyan line, situated at 10% of the pattern’s width above the upper side of the triangle, offers an entry point. The green line, situated

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Gold prices have been moving sideways with ever-decreasing volatility after the rally at the end of the last year. As a result, a symmetrical triangle pattern has formed on the daily chart of the commodity. It is considered a continuation pattern, meaning that after the period of sideways movement prices are more likely to resume movement in the previous direction than to move in the opposite direction. In the present case, an upward breakout seems likely, especially considering that fundamentals were favorable to gold recently.

On the present chart, the yellow lines show the triangle itself. For those who want to bent on a bullish breakout, the cyan line, situated at 10% of the pattern’s width above the upper side of the triangle, offers an entry point. The green line, situated at the pattern’s width above the triangle, suggests a price level at which it would reasonable to lock in profit.

You can click on the image to see a full-size version:

Symmetrical Triangle Pattern on Daily Chart of Gold as of 2020-02-16

The chart was built using the ChannelPattern script. You can download a MetaTrader 4 chart template for this gold pattern. You can also trade it using the free Chart Pattern Helper EA.

If you have any questions or comments regarding this symmetrical triangle pattern on the chart of gold, please feel free to submit them via the form below.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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