Head and Shoulders & Elliott Wave Convergence
Gold is currently exhibiting a definitive trend reversal signal following a sustained bullish run. This analysis combines classical chart patterns with Elliott Wave theory to outline the high-probability path forward.
Head and Shoulders Pattern (H&S)
The H&S structure is clearly visible on the current timeframe, signaling buyer exhaustion:
Left Shoulder: Formed around the 4,730 level.
Head: Peaked at 4,760, where significant selling pressure was encountered.
Right Shoulder: Has completed a retest of the 4,750 zone and is now showing signs of rejection.
Neckline: Currently situated between 4,660 – 4,670. A decisive break below this line will confirm the bearish reversal.
Elliott Wave Perspective
The price action is entering a corrective phase, currently transitioning into a 5-wave impulsive bearish structure:
Waves (1) & (2): Completed, establishing the peak and a minor corrective bounce.
Wave (3): Expected to be the most aggressive expansion wave, targeting the "Buy Scalping" zone near 4,630 – 4,640.
Wave (4): A projected technical pullback to retest overhead supply.
Wave (5): The final leg lower, aiming for the "Liquidity Strong" zone at 4,550 – 4,560.
Key Institutional Levels
FVG Sell Zone : The 4,700 – 4,720 range serves as a critical resistance. This is the optimal "Sell on Strength" area if a relief rally occurs.
Sell-Side Liquidity: The 4,661 level represents a major liquidity pool. A sustained close below this point is likely to accelerate the downward momentum.
Liquidity Strong : The 4,550 area is a high-confluence zone for buyers and serves as the primary target for the completed cycle.
Trading Strategy
Bias: Bearish / Sell on Rallies
Sell
Primary Entry: Sell within the FVG Zone (4,700 – 4,715) on a corrective bounce.
Breakout Entry: Sell Stop below the Neckline 4,660
Take Profit : TP1 at 4,635 (Scalp target), TP2 at 4,560
Stop Loss : Above the Right Shoulder peak at 4,755
Buy Scalping:
Counter-trend scalps should only be considered at 4,635 or 4,555, contingent on clear price rejection and lower timeframe confirmations.
Gold is currently exhibiting a definitive trend reversal signal following a sustained bullish run. This analysis combines classical chart patterns with Elliott Wave theory to outline the high-probability path forward.
Head and Shoulders Pattern (H&S)
The H&S structure is clearly visible on the current timeframe, signaling buyer exhaustion:
Left Shoulder: Formed around the 4,730 level.
Head: Peaked at 4,760, where significant selling pressure was encountered.
Right Shoulder: Has completed a retest of the 4,750 zone and is now showing signs of rejection.
Neckline: Currently situated between 4,660 – 4,670. A decisive break below this line will confirm the bearish reversal.
Elliott Wave Perspective
The price action is entering a corrective phase, currently transitioning into a 5-wave impulsive bearish structure:
Waves (1) & (2): Completed, establishing the peak and a minor corrective bounce.
Wave (3): Expected to be the most aggressive expansion wave, targeting the "Buy Scalping" zone near 4,630 – 4,640.
Wave (4): A projected technical pullback to retest overhead supply.
Wave (5): The final leg lower, aiming for the "Liquidity Strong" zone at 4,550 – 4,560.
Key Institutional Levels
FVG Sell Zone : The 4,700 – 4,720 range serves as a critical resistance. This is the optimal "Sell on Strength" area if a relief rally occurs.
Sell-Side Liquidity: The 4,661 level represents a major liquidity pool. A sustained close below this point is likely to accelerate the downward momentum.
Liquidity Strong : The 4,550 area is a high-confluence zone for buyers and serves as the primary target for the completed cycle.
Trading Strategy
Bias: Bearish / Sell on Rallies
Sell
Primary Entry: Sell within the FVG Zone (4,700 – 4,715) on a corrective bounce.
Breakout Entry: Sell Stop below the Neckline 4,660
Take Profit : TP1 at 4,635 (Scalp target), TP2 at 4,560
Stop Loss : Above the Right Shoulder peak at 4,755
Buy Scalping:
Counter-trend scalps should only be considered at 4,635 or 4,555, contingent on clear price rejection and lower timeframe confirmations.
📌 New analysis published daily
🔔 Follow this profile for real-time updates
⚠️ This is personal analysis, not financial advice
Daily GOLD and Forex updates: t.me/+FpQxobBy8loxZTll
🔔 Follow this profile for real-time updates
⚠️ This is personal analysis, not financial advice
Daily GOLD and Forex updates: t.me/+FpQxobBy8loxZTll
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📌 New analysis published daily
🔔 Follow this profile for real-time updates
⚠️ This is personal analysis, not financial advice
Daily GOLD and Forex updates: t.me/+FpQxobBy8loxZTll
🔔 Follow this profile for real-time updates
⚠️ This is personal analysis, not financial advice
Daily GOLD and Forex updates: t.me/+FpQxobBy8loxZTll
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.