A Fascinating Flag Trendline Pattern for Gold

Sep 10, 2013: 9:31 AM CST

Gold is forming a rising parallel trendline channel or “flag” pattern that should call our attention.

Let’s start with a pure price viewpoint of this pattern along with the broader picture for planning.

Gold Flag Trendline Rising Parallel Trendline Technical Analysis Daily Chart Trade Signals Swing Trading Charting

There’s different names for the current pattern including “AB=CD” Measured Move, Rising Parallel Trendline Pattern, and broader “Bear Flag.”

Either way, this pattern shows symmetry or similarity in both the July and August up-swings and the early August and early September down-swings or retracements.

Price remained within the rising trendlines or reference points which is where we start our current planning.

In simplest terms, a “Pattern Continuation” event suggests a bounce up and continuation higher toward the $1,450/$1,475 level.

Otherwise, a “Pattern Breakdown/Failure” event triggers under $1,350 which opens a play toward $1,300 or even $1,275.

Here’s the broader picture beyond the simple recent clear price pattern:

Gold Daily Chart Trading Tactics Advice Strategy Swing Trading Planning Levels Resistance Support

We still see the rising parallel counter-trend ‘flag’ or “ABC” retracement event trading up into the $1,425 prior high (and upper Bollinger Band) target.

The recent swing took gold prices logically down away from $1,430 toward the key polarity or confluence support target price into $1,350.

While we saw an initial bounce up, this morning’s activity takes us back to challenge the $1,350 level which will be our focal point again for planning.

A clean breakdown under $1,350 suggests a “Bear Flag Downside Breakout” event which opens a play toward $1,300/$1,275.

Once again, the “Pattern Continuation” play would remain valid while price traded between the rising trendlines and up away from the $1,350 key confluence.

Keep watching this area and the clean trendline pattern closely throughout the week.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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4 Comments

4 Responses to “A Fascinating Flag Trendline Pattern for Gold”

  1. Peter Says:

    Would you say the rise to 1450-1475 in gold is now compromised or is it still a possibility despite this down move. I notice it has not made a lower low yet..

  2. The Gold Trendline Kiss Trade Example | Afraid to Trade.com Blog Says:

    […] A “Measured Move” or clear Bull Flag (blue and black line) occurred during the development of what can also be called a “Rising Parallel Trendline Channel” price pattern. […]

  3. The Gold GLD Trendline Kiss Trade Example Says:

    […] A “Measured Move” or clear Bull Flag (blue and black line) occurred during the development of what can also be called a “Rising Parallel Trendline Channel” price pattern. […]

  4. The Gold GLD Trendline Kiss Trade Example | manufacturer blog Says:

    […] A “Measured Move” or clear Bull Flag (blue and black line) occurred during the development of what can also be called a “Rising Parallel Trendline Channel” price pattern. […]