In a previous idea I published i said that gold was bullish giving that he was making an inverse Head and Shoulders you can find it here :
But after the move of the 1st October a lot of things have changes. Gold has just broken the neckline of a Head & Shoulders and canceled the inverse one I talked about in my previous post.
After hitting the 61.8% Fibonacci...
The symmetrical triangle is a neutral pattern, we have to wait for a break.
In case of an upward break: 1st resistance at 101.53, 2nd resistance at 103.74
A downward break: 1st support 95.81, 2nd support 93.79
The bottom of the right shoulder is on a key support level marked by the Fibonacci fans and the 50 day SMA (former Resistance). A small rebound from here is not unlikely seeing the bullish Harami candle pattern (candles of 16/9 and 17/9 ). All of this indicates a short term up movement on gold.
Eventually, if this move materialize this will mean that the inverse...
1st wave: GBP up from 1.4814 to 1.5435 (up 621 pips), in 12 trading days
2nd wave: correction from 1.5435 down 333 pips to hit 1.5102
3rd wave: GBP up from 1.5102 to 1.5718 (up 616 pips), in 13 trading days
4th wave: correction from 1.5718 down 255 pips to hit 1.5463
NB: note the numbers in the up trend, up 621 pips then 616. and each up movement took about 13...
