A little correction for gold ?

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold shot up to 1344, almost touched yearly high but found sellers there and started to retrace. Please take a look at the 3-hour chart.

Firstly, price went down from 1344 to 1327 (Wave A) and found support there. Secondly, price went up from 1327 to 1339 (Wave B) but quickly got sold to current price at 1333. Usually, a correction would be in a zigzag that is formed by three waves A-B-C. And wave B is usually between 61.8% to 76.4% of Wave A. It is possible that gold is in Wave C that can reach as low as 1310.
Moreover, gold has a pin bar with confirmation telling us that price got rejected at the resistance 1344-1347. This pin bar can signal a potential short-term reversal.
RSI is coming down from overbought area and MACD is having a bearish posture. These might indicate further price weakness.
Now it seems like a head & shoulders pattern has appeared. If gold manages to breakdown under neckline, gold can go down to test support zone at 1309-1312.

If price trades above recent high at 1344, this above assumption is no longer valid.


Order cancelled: Price reached 1345


I have a question. What do you think of reverse-head and shoulder on week chart ?
+1 Reply
@Phantom13, anything can happen in gold market. If gold breaks 1365/1375, the inverse head and shoulders on weekly chart can send gold to 1450/1500. But for that to happen, it needs further fundamental support such as trade wars crisis, hard brexit, Rates cut or economy recession.
+1 Reply
@GOLDTREND-NET, Thank you!
Great setup, following you now mate! I´m about to post a trade shortly, have a look on my profile for detailed information :)
+1 Reply
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