Thursday, November 21st, 2019 MST

Bullish flag formation for price of gold

The below graph is a downward sloping bullish graph for the price of gold.  Often times, such formations break out to the upside.  Gold is now making its fourth attempt at bettering the top downtrend line, which is where breakouts often occur.

In a bullish flag pattern, the price action rises during the initial trend move and then declines through the consolidation area. The breakout may not always have a high-volume surge, but analysts and traders prefer to see a high-volume surge because it implies that new investors and traders have entered the market with enthusiasm.

This pattern is especially bullish because gold has been moving up since 2015, meaning a continuation move to the upside.  It will be interesting to follow the price of gold over the next few months.

Leave a Comment

Precious Metals Data, Currency Data , Precious Metals Automated Product Pricing Powered by nFusion Solutions