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How to choose a direction at the end of a triangular formation

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#XAUUSD GOLD XAUUSD

Although gold is still in a volatile market in the short term, its current trend has entered the end of a converging triangle pattern, and the market is getting closer to choosing a direction.

The market has recently been driven primarily by news, and the current geopolitical tensions, coupled with the stalled Russia-Ukraine peace talks, may trigger a new wave of risk aversion. Therefore, during the European session, we can consider going long on gold when it retraces to the 4040-4030 range.
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#XAUUSD

Gold prices rebounded following news of a potential collapse of the Gaza ceasefire agreement. Short-term focus is on the 4068-4073 resistance level, failure to break this level could lead to a pullback, in which case we can proceed with our plan. If gold continues its strong upward trend in the European session and breaks through the boundary of the triangle pattern, it will further test the resistance level of 4095-4110. If it rebounds to this level, you can consider shorting gold with a small position. Be patient, participate in trading at key price levels, and remain on the sidelines in the middle range.
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#XAUUSD

When gold rebounded to the 4095-4110 range, we executed a short position as planned. However, the price of gold only fell back to around 4088 before rebounding again, failing to reach our ideal target. Therefore, we will continue to hold short positions in the short term. Gold prices have risen again due to external news, causing short-term technical indicators to become distorted. However, the hourly chart shows an overbought condition, suggesting a potential for a pullback. Therefore, I believe we can appropriately add to our position to increase our average price, thus making our entry price more favorable.

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