The XAU/USD (Gold) chart is showing the end of an ABCDE triangle pattern (green). This could complete a wave 4 (blue) retracement and restart the uptrend. What is the key breakout zone for the bulls?
Price Charts and Technical Analysis
Gold needs to make a bullish break above the resistance trend lines (red) to confirm the upside (green check). There is not much resistance ahead from a volume point of view once the breakout occurs. Although the tops of wave B and D remain sub levels to be aware of. The current wave 1-2 pattern remains valid as long as price stays above the Fib levels of 2 vs 1. A break below the 100% Fib could indicate a deeper retracement first within the larger uptrend.
Although Gold has probably completed the triangle pattern, the wave C of a triangle is known to be complex and lengthy. A new low could easily expand the wave C and hence the entire triangle (small red x). The entire triangle pattern would become invalid if price breaks below the bottom (big red x). For the moment, a bullish breakout and uptrend resumption do seem close by. The Wizz 9 and previous top are the next immediate targets
