On Wednesday morning, the support of the 55-hour simple moving average reached the yellow metal’s price. Previously, on Tuesday, the rate bounced off the resistance of the 1,740.00 mark. In the meantime, a pattern has been spotted on the chart.
By marking the 1,740.00 level’s resistance and connecting the recent higher low levels that have been booked since March 15, an ascending triangle pattern can be observed. Namely, the rate is being squeezed in, as bulls push the metal higher, but bears keep holding at 1,740.00.
In the case of the lower trend line of the pattern failing, the price could look for support in the 100-hour simple moving average near 1,725.00 and the 200-hour SMA near 1,715.00.
On the other hand, if the metal manages to pass the 1,740.00 level, the price could reach the March high level at 1,760.00.