Gold is potentially setting up for 3 different bearish flag patterns. The first red bearish flag was within 10 pips of price target 1287.17 last week at the 1.618 Fibonacci Extension level. As shown in the analysis, right before the release of the red bearish flag at the 0.618 Fibonacci Retracement level there was a last kiss scenario where price had a last test of the trendline before releasing. The last kiss took place at the same price of ~1316 as the strong rejection wick shown in the analysis with the 1st horizontal arrow pointing at the trendline .
The second blue bearish flag forming might get released too early for a last kiss scenario to take place and have a retest of the 1.618 Fibonacci Extension level, but personally I want the accumulation to extend to the purple bearish flag that's been drawn. If that happens to play out, the analysis shows that the accumulation release would take place close to where the red flag pattern started accumulating, marked with the 2nd horizontal arrow, and put price in a zone between the 0.5 and 0.618 Fibonacci Retracement levels which is added confluence for the short position.
Target for the blue flag pattern is at ~1287.17. Target for the purple flag pattern is at ~1274.56.
- It's worth noting that when drawing the flag patterns the initial handle/leg is drawn, cloned and pasted so that both handles/legs of the flag are of equal length.
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The Idea behind price target for the purple flag pattern.
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Please ignore the highlited prices on the price meter: 1293.01 , 1287.97 and 1277.83 They are from an old analysis and I forgot to remove them.
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This was my initial analysis made on Thursday 21th september 2017, shortly after FOMC took place. I was expecting a retrace to enter a short position but it straight dropped.
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A clearer picture of the analysis.
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The blue flag might be releasing.
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Just noticed the bottom price tag was blocking the candles so removed it. I apologize
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Update - Looks to be testing the flag again
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Working on a new gold analysis, this didn't work out as planned. Broke Trendline and didn't form the flag.