thought on Gold next week. Head and shoulders are coming?
Gold has crazy moved down on Friday and already broke the weak support at the blue order box.
Typically, in basic structure we should ignore this zone for valuing a long position as many as possible whatever it forms (demand,supply,support,resistance) since it is the first band after price has move down and there is a stronger demand zone nearby.
btw the previous demand zone in the green order box is still valid? If so, we are looking forward to seeing a typical head and shoulders pattern. we depict that price is during the processing of molding right shoulder, possible target at the green horizontal ray.
- PS. this setup should be failed if price consolidated and played around at its bottom (wedge, triangle.. in lower timeframe) on Monday bs lack of bullish momentum it's clearly this is not a valid reversal zone.
Typically, in basic structure we should ignore this zone for valuing a long position as many as possible whatever it forms (demand,supply,support,resistance) since it is the first band after price has move down and there is a stronger demand zone nearby.
btw the previous demand zone in the green order box is still valid? If so, we are looking forward to seeing a typical head and shoulders pattern. we depict that price is during the processing of molding right shoulder, possible target at the green horizontal ray.
- PS. this setup should be failed if price consolidated and played around at its bottom (wedge, triangle.. in lower timeframe) on Monday bs lack of bullish momentum it's clearly this is not a valid reversal zone.