© Dukascopy Bank SA
Gold is not the instrument we frequently cover, but there is a high quality and high magnitude pattern being formed on an hourly chart. The rising wedge is already more than 370 bars long—its inception dates back to the end of June, when the price of the commodity bottomed out near 1,181. During that time the spot advanced up to 1,338 and could rise even further, if we are to believe the technical indicators. However, each new bar on the chart brings us closer to the apex of the formation, in other words the probability of a sharp decline increases, since this type of a pattern suggests a reversal of the major trend.
© Dukascopy Bank SA