Daily Pennant In August Gold Futures - Forex News by FX Leaders
Gold has Broken out

Daily Pennant In August Gold Futures

Posted Monday, July 15, 2019 by
Shain Vernier • 1 min read

July has been a tight month on the gold markets. Traders have hotly debated the potential impacts of FED quantitative easing, slowing global economic growth, and international trade tensions. Of course, political uncertainty is also foreshadowing the bullion markets; both Brexit and the 2020 U.S presidential election will be decided in 18 months time. For now, the bulls and bears have fought to a stalemate in bullion.

August Gold Futures Form 4-Session Pennant

At press time (11:15 PM EST), August gold futures are in heavy consolidation. Subsequently, a pennant formation is setting up on the daily chart.

August Gold Futures (GC), Daily Chart
August Gold Futures (GC), Daily Chart

Here are the levels to watch in this market as the week unfolds:

  • Resistance(1): Double Top Formation, 1442.9-1441.0
  • Support(1): 38% Current Wave, 1397.3
  • Support(2): Daily SMA, 1395.4
  • Support(3): Bollinger MP, 1390.8

Overview: As a general rule, markets become compressed before they break out directionally. This is exactly what we are currently seeing in the GOLD markets. A four-day pennant pattern is in the midst of setting up, suggesting that bullion is preparing to post a directional move. More than likely, the breakout will come in the next 48 hours, with several key economic events hitting the news wires.

For now, August gold remains in bullish territory. Price is above the 38% Current Wave Retracement (1397.3) and daily support, promoting a long-side bias. If price breaks from the pennant to the bull, a rally above the Double Top to 1450.0 will become probable. As always, stay tuned for details on how to get in on the action.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments