Falling-Wedge Breakout Keeps Bulls Engaged
The larger pattern unfolding remains a bullish breakout from a falling wedge pattern that triggered on Friday with a rally above the top boundary line of the pattern. Strength was seen following the establishment of strong support at the confluence of several indicators. This suggested that the recent bearish correction may have completed with a higher swing low of $4,235 that was generated last week.
$4,400 Breakout Opens $4,511 Target
If gold is able to rise above last week’s high of $4,400, a bullish continuation signal will be generated. The next upside target would then be the initial target derived from the wedge pattern at $4,511.