Bullish Pennant Breakout Strategy in Gold

Bullish Pennant Breakout in Gold MCX

📊 Pattern Overview:
A Bullish Pennant pattern has formed after a strong upward move, signaling a potential continuation of the trend. The pattern is characterized by converging trendlines during consolidation, followed by a breakout to the upside.

📈 Strategy Setup:

Pattern: Bullish Pennant

Breakout Confirmation: Price closing above pennant resistance line

Entry Zone: Near breakout candle close

Target (T1): ₹125,635

Stop Loss (SL): ₹118,682

Risk–Reward Ratio: Approximately 1:2

📊 Indicator Confluence:

T-K Cross: Bullish Cross

Price vs Kijun: Bullish

Cloud Trend: Up

VWMA: Up

RSI: Up

VWAP: Up

SuperTrend: Down (short-term resistance, to be monitored)

🧠 Trading Logic:
The Bullish Pennant indicates a temporary consolidation within an existing uptrend. A confirmed breakout with indicator support (Ichimoku, RSI, VWMA, and VWAP in alignment) strengthens the bullish momentum. Traders may look for sustained candles above the upper trendline with volume confirmation.

⚠️ Disclaimer:
This content is shared for educational purposes only and does not constitute investment or trading advice. Market conditions can change rapidly — always conduct your own analysis and use proper risk management before making any trading decisions.