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Symmetrical Triangle Pattern on Daily Chart of Gold as of 2020-05-10

May 10, 2020 at 18:03 by Vladimir Vyun

Gold was rising since the middle of March on the back of the coronavirus fears but has paused its rally in the middle of April and was moving in a range since then. As a result of the consolidation, a symmetrical triangle pattern has formed on the daily chart of gold. It is a continuation pattern, meaning that the commodity is more likely to resume its previous movement than to reverse it. It is in line with the outlook of many market analysts, who believe that safe-haven demand will continue to support gold, even though the precious metal had troubles profiting from risk aversion lately.

On the present chart, the yellow lines show the symmetrical triangle itself. The cyan line is situated at 10% of the pattern’s width above the triangle and offers an entry point for long positions in case of an upside breakout for those traders who want to be bullish on gold. If the metal indeed continues to move higher, then the green line shows the profit-taking target.

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

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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