Welcome to Extreme Investor Network, where we provide unique and valuable insights into the stock market, trading, and Wall Street. Today, we are focusing on the breakout of a symmetrical triangle pattern in the market.
The recent advance has triggered a breakout from a symmetrical triangle consolidation pattern that has been forming for about a month. This strong burst of upside momentum is a positive sign and should support improving demand from market participants over the weekend. However, follow-through will be key from here. Will gold pull back before rising above this week’s high and staying there? Or will a pullback to test the breakout zone as support happen first?
When it comes to targets, the measuring objective from the triangle pattern is estimated to be 2,605. This is derived by taking the distance in price from the low to high of the pattern and projecting it up from the breakout price level. On the way to this target, the next target is identified around 2,543, where a rising ABCD pattern completes an initial target. The secondary target is a 127.2% extension at 2,595, which is close to the triangle target. These two price levels can be watched as a price range.
In between these target areas, there is a long-term target at 2,566. This target comes from a large rising ABCD pattern that starts from the lows in September 2022. The most recent long-term target was hit around the prior record high in July. It is important to pay attention to these levels, as they can provide insights into the dynamics of the market at the time.
As always, it is essential to stay informed about economic events that may impact the market. Be sure to check out our economic calendar for a look at all of today’s events.
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