At This Stage Gold Is Forming a Figure Resembling a Pennant

If we draw the trendlines on the daily time frame at this stage we can observe the formation of a pattern that strongly resembles a pennant. Let’s consider a pennant’s characteristics:

-It’s a corrective figure that is forming a direction opposite of that of the overall trend.
-It has converging trendlines.
-There is a support or resistance level that causes said correction.
-The figure appears smaller (at this stage) than the overall trend.
If this really is a pennant we need to keep in mind that this is a trend-continuation figure and we can expect a breakout to the upside.

That said, the figure hasn’t finished forming and all we can do for the moment is to follow its development, waiting for the breakout that will make it clear whether this is a valid scenario or not.