How Do I Analyze Bull Pennant Chart Pattern?

How Do I Read Bull Pennant Chart Pattern?

Bull pennant pattern forms what looks like a rectangle pattern with a slight downwards tilt. The rectangle is formed by 2 parallel lines that act as support level and resistance level for xauusd price until the xauusd price breaks out. Generally, the bull pennant chart pattern will not be perfectly flat but it will be sloping and having a slight tilt.

The bull pennant pattern is found within an upwards xauusd trend. Bull pennant pattern is a continuation chart pattern where the price retraces slightly, bull pennant chart pattern is therefore a slight xauusd price retracement with narrow xauusd price action which has a slight downward tilt. The buy signal is generated when the price penetrates the upper line of the bull pennant chart pattern. The pennant portion of the bull pennant chart pattern has xauusd price highs and xauusd price lows which can be connected together by small lines which are parallel, giving it what looks like a small channel - pennant.

The bull pennant chart pattern occurs at halfway point of a bullish upward gold trend and after a xauusd price break out a similar move equal to the height of the pennant pole is expected.

Interpret Bull Pennant Pattern?

The bull pennant pattern shown above was just a consolidation period as the gold market gathered momentum to break out and move higher. The bull pennant chart pattern continuation gold signal was confirmed when the upper line of this Bull pennant chart pattern was broken to the upside after which the xauusd price continued to move upwards.

Interpret Bull Pennant Pattern?