glennhowell

XAUUSD | Head and shoulders forming?

OANDA:XAUUSD   Gold Spot / U.S. Dollar
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7
We'd be jumping the gun to short here - that's a move for only the most aggressive trader.

However, as a general rule, we want to sell with weakness in the background and conversely we want to buy when we see strength building.

A completed head and shoulders (we don't have the right shoulder yet) on GOLD would tick the box for background weakness.

Depending on how the possible right shoulder forms, we could consider a horizontal neckline at $1495. Alternatively, we may be faced with a downward sloping neckline, acceptable for a sell trade.

The best play would be:

1. Wait for the right shoulder to confirm
2. Wait for price to trade below the neckline
3. Sell off neckline resistance
4. Target $1440 for profit


Comments

Good view :)
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