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.