XAU/USD Has been moving up the past few months.
Price reached a major resistance and pivot point on the weekly chart.
A very long pin bar was then formed, on the weekly chart, this is a very strong sign of reversals.
With price reaching this resistance for the second time and rejecting it for the second time, a double top was formed.
On the daily chart, price formed a head & shoulders. These are very string confluences so far.
Going lower to the 4H chart we see a bearish continuation pattern AND there are two other patterns within it, also bearish continuation patters.
A flag and a rising wedge.
There are a lot of buyers sitting around 1920. Every time price breaks below this value cleanly, we see an impulsive move downwards but price has managed to pull back above this price twice.
Gold is currently resting on this price level and it seems it is likely to break soon at it is constantly being tested.
The sequence of the continuation pattern drawn up has been completed to 4, which is the third touch on the resisting trendline. What we expect now is for price to move downwards then break & retest the support below.
We should look to sell when price breaks below the support at 1920 and also the major support around 1890.
Take profit should be the price marked in green
XAUUSD
Price reached a major resistance and pivot point on the weekly chart.
A very long pin bar was then formed, on the weekly chart, this is a very strong sign of reversals.
With price reaching this resistance for the second time and rejecting it for the second time, a double top was formed.
On the daily chart, price formed a head & shoulders. These are very string confluences so far.
Going lower to the 4H chart we see a bearish continuation pattern AND there are two other patterns within it, also bearish continuation patters.
A flag and a rising wedge.
There are a lot of buyers sitting around 1920. Every time price breaks below this value cleanly, we see an impulsive move downwards but price has managed to pull back above this price twice.
Gold is currently resting on this price level and it seems it is likely to break soon at it is constantly being tested.
The sequence of the continuation pattern drawn up has been completed to 4, which is the third touch on the resisting trendline. What we expect now is for price to move downwards then break & retest the support below.
We should look to sell when price breaks below the support at 1920 and also the major support around 1890.
Take profit should be the price marked in green
XAUUSD
