GOLD at a Decision Point – Inverse Head & Shoulders vs. Channel

May 20

hello guys!


Gold is currently forming a potential Inverse Head and Shoulders pattern at the bottom of a descending channel. This setup typically signals a reversal, but it faces a critical test at the neckline resistance and channel midline.

📌 Scenarios to Watch:
1️⃣ Bullish Breakout:
If the neckline is broken with strong momentum, we could see a continuation toward the upper resistance near $3,340, aligning with the descending channel’s top.
2️⃣ Bearish Rejection:
Failure to break the neckline could result in a sharp rejection, pushing gold back down toward the demand zone at $3,055–$3,075, especially if price respects the mid-channel resistance.

🔍 Key Technical Insights:
🧩 Inverse Head & Shoulders pattern forming
📉 Still trading inside a bearish descending channel
🛑 Neckline and midline confluence = strong resistance
🔻 Below neckline = bearish continuation risk

May 21

Trade active

May 21

Trade closed: target reached

you can close it