Gold Attempts Bullish Breakout: Key Levels to Watch
19 June 2024
In today's technical analysis, we turn our attention to Gold, which is currently trading at its weekly highs and attempting to break out of a symmetric triangle pattern, marked by red lines. The price is pushing higher, but buyers are encountering resistance, making the breakout attempt somewhat tenuous. As the hourly candle forms a shooting star, there's a real risk of a false bullish breakout, which traders should be cautious of.
To navigate this scenario, if the price manages to close the day higher and maintains upward momentum over the next few hours, it would confirm a bullish breakout from the symmetric triangle, signaling a strong buy opportunity. This continuation would validate the breakout, suggesting that the bullish trend is gaining strength and potentially leading to further gains.
On the other hand, if the price falls back into the triangle and closes below the yellow area, transitioning from daily highs to daily lows, it would indicate a false breakout and a strong sell signal. This scenario would highlight the failure of the bullish attempt and suggest a potential decline. Traders should closely monitor these movements to determine the most strategic action in response to Gold's price behavior.