GOLD Inversre Head and Shoulders Target Met
Hello Traders, '
Today's chart will be an update on GOLD (US$/OZ) based on previous chart posted on 06/21/2019 ( Feel free to have a look!)
Points to consider here
- Inverse Head and Shoulders Valid
- Price broke multi year long resistance zone, now turned potential support
- Price has reached calculated target of this inverse head and shoulders ( Blue vertical line)
We have some noticeable bearish signs in recent developments after this breakout
- potential bearish divergence as the RSI puts in consecutive lower highs as price tries to put in higher highs
- Stoch looks like its topping out indicating potential downwards momentum
- The inverse head and shoulder's setup has psychologically ended as price is now in discovery mode
The probabilities for GOLD to correct is more favorable as the pattern has now completed, this is looking to be the local top as the RSI is showing a very clear bearish divergence. The Fibonacci retrancement shows potential price targets, the golden Fibonacci line (.618 - $1369.04) is sitting very close to the now new support in the macro structure. GOLD could with a high probability retrace to the .618 area and retest the previous resistance now turned support...
What are your thoughts? please leave a like and comment
and remember,
Letting losses run is the most serious mistake made by most investors - William O’Neil
Today's chart will be an update on GOLD (US$/OZ) based on previous chart posted on 06/21/2019 ( Feel free to have a look!)
Points to consider here
- Inverse Head and Shoulders Valid
- Price broke multi year long resistance zone, now turned potential support
- Price has reached calculated target of this inverse head and shoulders ( Blue vertical line)
We have some noticeable bearish signs in recent developments after this breakout
- potential bearish divergence as the RSI puts in consecutive lower highs as price tries to put in higher highs
- Stoch looks like its topping out indicating potential downwards momentum
- The inverse head and shoulder's setup has psychologically ended as price is now in discovery mode
The probabilities for GOLD to correct is more favorable as the pattern has now completed, this is looking to be the local top as the RSI is showing a very clear bearish divergence. The Fibonacci retrancement shows potential price targets, the golden Fibonacci line (.618 - $1369.04) is sitting very close to the now new support in the macro structure. GOLD could with a high probability retrace to the .618 area and retest the previous resistance now turned support...
What are your thoughts? please leave a like and comment
and remember,
Letting losses run is the most serious mistake made by most investors - William O’Neil
