Descending Triangle Breakout In Gold – Trading Signal Update

Gold was consolidating in a descending triangle pattern, supporting the pair near $1,322. On the breakage, we decided to jump in the market.


It’s been an excellent start to the week as team FX Leaders closed four winning forex trading signals during the late Asian sessions. Our forex trading signal on Gold is also swimming in profits.

Fundamentally, the bullion market is mixed, with no clear signal as to direction, thanks to technicals for sparing an outstanding entry.

Three Reason for a Bearish Gold

Firstly, on the hourly chart, Gold was consolidating in a descending triangle pattern, supporting the pair near $1,322. On the breakage, we decided to jump in the market with a target of $1,318.20.

Secondly, Gold is trading below the 50 periods EMA, indicating a bearish bias of investors.

Gold - Hourly Chart - Descending Triangle Pattern

Gold – Hourly Chart – Descending Triangle Pattern

Thirdly, the leading indicators, RSI and Stochastics, had a bearish crossover. At the moment, the leading indicators are about to enter the oversold zone. We need to carefully monitor the trade to avoid bullish reversals.

Gold – XAU/USD – Trading Idea

The idea is to stay bearish below $1,322 with a stop above $1,324 and profit at $1,318. I will be looking for a buy position somewhere around $1,314. Stay tuned for our updates for quick profits.

Good luck!   

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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