GOLD - Possible Inverse Cup + Handle forming. Neckline @ ~ 1520
- As shown in the chart gold could be setting up to form an inverse Cup and Handle formation
- The "Cup" of the pattern looks to have formed already with a nicely define "U"
- The neckline of the pattern appears to be at 1520, this level previously acted as a strong support level and is clearly now acting as new resistance evidenced by the
recent rejections/moves lower off this level within the "cup" of the pattern
** For the handle of the pattern to form we would now need to see further rejection from the 1520 level to move lower and form some sort of bull continuation pattern eg bull flag, descending wedge
** I have indicated the 61.8 fib retrace level within the "cups" overall bull move, This could be the level we bounce from within the handle if it is formed.
This is all purely hypothetical atm as the pattern itself has not fully formed yet
- The "Cup" of the pattern looks to have formed already with a nicely define "U"
- The neckline of the pattern appears to be at 1520, this level previously acted as a strong support level and is clearly now acting as new resistance evidenced by the
recent rejections/moves lower off this level within the "cup" of the pattern
** For the handle of the pattern to form we would now need to see further rejection from the 1520 level to move lower and form some sort of bull continuation pattern eg bull flag, descending wedge
** I have indicated the 61.8 fib retrace level within the "cups" overall bull move, This could be the level we bounce from within the handle if it is formed.
This is all purely hypothetical atm as the pattern itself has not fully formed yet