Gold (XAU/USD) has formed a classic Quasimodo pattern on the 1H timeframe, signaling a potential bearish reversal after a strong uptrend.
🔍 Pattern Breakdown:
The structure resembles a Head & Shoulders, with a more complex formation known as the Quasimodo Pattern.
We see a clear Left Shoulder, Head, and Right Shoulder, followed by a breakdown below the neckline.
A successful retest of the neckline as resistance confirms the bearish momentum.
🎯 Target Zone:
Based on the height of the pattern, the projected target lies in the 2960–2970 region, aligning with a previous demand zone.
The expected drop is approximately -2.10%, matching the prior rally before the reversal pattern.
📌 Key Levels:
Breakdown Level: ~3030
Current Price: ~3024
Target: ~2960–2970
⚠️ Watch for:
Bearish follow-through after the retest.
Potential reaction in the highlighted target zone (yellow box).
This setup provides a great opportunity for short sellers if momentum continues to the downside. Risk management is key as always!
🔍 Pattern Breakdown:
The structure resembles a Head & Shoulders, with a more complex formation known as the Quasimodo Pattern.
We see a clear Left Shoulder, Head, and Right Shoulder, followed by a breakdown below the neckline.
A successful retest of the neckline as resistance confirms the bearish momentum.
🎯 Target Zone:
Based on the height of the pattern, the projected target lies in the 2960–2970 region, aligning with a previous demand zone.
The expected drop is approximately -2.10%, matching the prior rally before the reversal pattern.
📌 Key Levels:
Breakdown Level: ~3030
Current Price: ~3024
Target: ~2960–2970
⚠️ Watch for:
Bearish follow-through after the retest.
Potential reaction in the highlighted target zone (yellow box).
This setup provides a great opportunity for short sellers if momentum continues to the downside. Risk management is key as always!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.