It looks like Gold
is forming an inverse Head and Shoulders
pattern which is typically a bullish pattern
. We can see that gold
is trying to break the neckline of 1348 and per classic technical analysis
theory the potential target of an H&S
should be measured from the neckline to the lowest point of the Head, so if we take that line and put it at the expected breakout point, that would show a potential target of ~1500. Of course, I would expect some resistance and retracements along the way but technically that should be the target.
In case we can break above 1360 level and retest it as support that would be a major bullish
sign for me.
We can also see from the VPVR indicator that the biggest resistance has already been cleared leaving us with huge support below.
Time will tell...let's see what happens.