Typically found in ranging periods as price juggles between a low and a high as marked by the two horizontal lines, this analysis relies on the Richard Wyckoff trading model to explain the ongoing activity in the price of Gold- XAUUSD, suggesting a potential shorting of the precious metal.
The buildup to now shows the market price has registered a chart pattern that typifies the events in a reaccumulation, preparing the price to continue upwards, or a distribution, campaigning for a price cancellation.
Only two more events remain for either pattern to be confirmed. They are a spring and SoS (Sign of Strength) if reaccumulating, or an upthrust and SoW (Sign of Weakness) if distributing To support the distribution idea is the fact that we are seeing Gold at its ATH (All Time High), a sell-off won't be a surprise as this pattern is anticipated for the 'far right' of bearishness rather than of a continuous bullishness.
Lastly, and reiterating that a confirmation of the price formation of the remaining pieces of the events expected to form a complete pattern will crown the effort.
The buildup to now shows the market price has registered a chart pattern that typifies the events in a reaccumulation, preparing the price to continue upwards, or a distribution, campaigning for a price cancellation.
Only two more events remain for either pattern to be confirmed. They are a spring and SoS (Sign of Strength) if reaccumulating, or an upthrust and SoW (Sign of Weakness) if distributing To support the distribution idea is the fact that we are seeing Gold at its ATH (All Time High), a sell-off won't be a surprise as this pattern is anticipated for the 'far right' of bearishness rather than of a continuous bullishness.
Lastly, and reiterating that a confirmation of the price formation of the remaining pieces of the events expected to form a complete pattern will crown the effort.
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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.