A lot of attention on Gold since we observed the bullish breakout of the descending channel. However, the excitement didn't last long when we had an aggressive bearish movement making the price go again the bearish structure. What now?
Let's start with the Weekly chart:
Here we can observe a Huge bearish engulfing candlestick (Bullish FakeOut of the descending channel). The movement happened on the Previous All-time High zone (working as a resistance zone)
From a Weekly perspective, we can define a target of 1700 if the bearish pressure keeps coming.
Now we will pay attention to the 4HS chart
-Our main structure is the descending channel; the bearish movement found support on the previous support zone (1840).
-We expect the price to correct on this level with similar proportions to the one that happened before (check the green arrow)
-If that happens and we can define a clear ABC pattern, we think that the breakout of it will mean a confirmation for the bearish movement towards the Weekly Target at 1700
I agree that the Red arrow should have signalled Wave 5, but it now looks like a Truncated 5th, particularly as the price action is in the tip stages of the triangle between the Descending Channel top and the 1849 support. I think if there is not a clear Red arrow movement soon, the channel is finished.