Flag Pattern on Gold Chart — Good News for Gold Bulls
You can see a flag chart pattern on the oil chart (4-hour time frame). The chart is named so obviously because it resembles a flag. It consists of a ”pole”, marked by the vertical yellow line on the chart, and a ”flag”, or the two parallel lines on the chart. The ”pole” marks a strong move of prices, while the ”flag” shows a small correction of prices in a small range (marked by the ”flag” or the parallel line on the chart) as prices take a breather after an initial strong move. This chart signals that the correction is a temporary pause before the prices will move in the direction of the initial strong move, in this case the next wave will be bullish. It’d be welcomed by gold bulls, who may be quite disheartened after the weak January performance of the precious metal. The price should rally after it breaks through the upper level of the ”pole”. Click the image to enlarge it to a
If you have any questions or comments regarding this chart pattern for the gold, please, feel free to reply below.