GOLD (XAU/USD), Technical Overview

After gold reached an all-time high, the price is currently moving at a neutral level between the resistance of the all-time high and the support line below. If you take a closer look, you will notice that the trend line and resistance form a triangle. Trading ascending triangle chart patterns is easy: if the price breaks above the upper resistance, open a buy position; if it closes below the trendline, open a sell position.

In this case, it is advisable not to do so, as the all-time high represents the ultimate resistance. A better idea would be to wait for the price to reach this level and consider opening a sell position if we notice a bearish candlestick pattern as additional confirmation for a potential sell. However, considering opening a buy position at the resistance level is highly risky at this moment.

We don’t have a clear signal for selling either, as the price is stuck in the middle of the triangle. Therefore, it is important to closely monitor the daily chart for potential trade setups.

Someone’s sitting in the shade today because someone planted a tree a long time ago.

Warren Buffet