Lingrid | GOLD Head and Shoulders Pattern Emerges
Updated
XAUUSD market has plunged during the London session, breaking and closing below the psychological level of 2700. Prior to this drop, the price action appeared to be forming a head and shoulders pattern, which is typically a reversal formation. Additionally, it has broken and closed below the upward trendline that has supported the price since the beginning of August. While the major trend remains bullish on the higher timeframes, I believe the market may be entering a deeper correction phase, as mentioned in my weekly forecast. With high-impact news today, we can expect heightened volatility in the NY session. I expect the market to retest the trendline and the resistance zone at 2700, followed by a bearish move towards the previous monthly low. My goal is support zone around 2615.Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
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The market has pulled back toward the psychological level at 2700, where it has hit resistance from both the resistance zone and the downward trendline. This suggests that sellers may still be active around these levels. It is possible that the market could move above the previous day's high in an attempt to grab liquidity before continuing its downward trajectory. This spike could be influenced by high-impact news, which may result in increased volatility and potential price spikes. Additionally, there is a chance that the market may move sideways for a period before downward move. This consolidation could create indecision as participants await the impact of the upcoming news. My goal on the 1H is support zone around 2660
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