Inverse Head & Shoulders Pattern on 4-hour Chart

OANDA:XAUUSD   Gold Spot / U.S. Dollar
On 4-hour chart, the downward trend line from 1303 acts as resistance. It looks like gold forms an inverse head & shoulders pattern whose neckline is the downward trend line . If gold breaks the downward trend line , gold can go up to test resistance zone at 1308-1311.

If gold trades below 1276, there will be a failure of the inverse head and shoulders pattern, and gold will go down to 1267-1270 or even lower.

Comment: Gold turned down from downward trend line, no break out yet. Waiting to see if gold turns lower to under 1276 or not.
Comment: As long as 1276 holds, there is still a chance that price will break out of downward trend line and the inverse H&S pattern will work out. But if price breaks under 1276, it will be a pattern's failure.
So here is the strategy: set a sell stop under 1276 with target 1267. Or a buy stop over 1285-1286 with target 1300.
Comment: Gold broke 1276. Inverse H&S pattern failed. Gold will probably reach 1267 and lower.
Comment: Gold is testing downward trend line again. Break out will lead to higher price, if not gold should turn down.
Comment: Gold breaks out of downward trend line
Comment: Based on Fibonnaci Extension, recommend to take profit at supply zone 1304-1308

Comment: Reach Supply zone but it can still go up a little bit more because the bullish action is very strong
Trade closed: target reached: Hit our expected TP level


Well done indeed. Now it should come back down to retest this support that started the uptrend.
+1 Reply
WOW - Well done!
+1 Reply
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