Gold, Silver, Platinum

Gold Builds ABCDE Triangle Pattern for Bullish Breakout

Dear traders, XAU/USD (Gold) is moving sideways in a triangle chart pattern. The ABCDE waves (blue) are expected to be completed soon.

4 hour chart

Gold 4 hour chart

The XAU/USD (blue) could be in the final wave E (blue). Although it’s possible the price will still extend the wave D (blue) at the resistance trend line (red) and the wave E at support. The ABCDE triangle is part of a wave 4 (purple) correction. This in turn is indicating an uptrend and a continuation of wave 5 (purple) within wave 3 (purple).

The bullish target is the 78.6% Fibonacci level of wave 5 vs 1+3. Price needs to break above the resistance trend lines (red) first before a new bullish swing could take place. A break below the 50% Fib invalidates the bullish outlook.

Gold chart

Good trading,

Chris Svorcik

The analysis has been done with the help of SWAT method (simple wave analysis and trading)

For more daily technical and wave analysis and updates, sign-up up to our newsletter