How to Analyze Bull Pennant Chart Pattern

How to Read Bull Pennant Trading Pattern

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

The bull pennant pattern is found within an upward xauusd trend. Bull pennant chart pattern is a continuation chart pattern where the price retraces slightly, bull pennant pattern is therefore a slight gold price retracement with narrow gold price action which has a slight downward tilt. 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 gold price highs & gold 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 pattern occurs at halfway point of a bullish upwards xauusd trend & after a gold price break out a similar move equal to the height of the pennant pole is expected.

Analyze Bull Pennant Chart Pattern? - How Do You Analyze Bull Pennant Chart Pattern

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

Analyze Bull Pennant Chart Pattern? - How Do You Analyze Bull Pennant Chart Pattern