How Do You Analyze Bull Pennant Chart Pattern?

How Do I Read Bull Pennant Chart Pattern?

Bull pennant chart pattern forms what looks like a rectangle pattern with a slight downward tilt. The rectangle is formed by two parallel lines that act as support level and resistance level for the 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 chart pattern is found within an upward xauusd trend. Bull pennant chart 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 that has a slight downwards 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 breakout a similar move equal to the height of the pennant pole is expected.

Interpret Bull Pennant Chart Pattern?

The bull pennant chart 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 upward.

Interpret Bull Pennant Chart Pattern?