GOLD → if the neckline breaks
hello guys.
Inverse Head and Shoulders Pattern:
The price action is forming an "Inverse Head and Shoulders" pattern, with the left shoulder, head, and right shoulder clearly marked. This pattern typically indicates a reversal from a downtrend to an uptrend.
The neckline of the pattern is located around the resistance zone at approximately $2,534.
Breakout Potential:
The price is currently trading near the resistance zone (neckline). A breakout above this level would confirm the pattern and could lead to a strong bullish move.
If the breakout occurs, the target of the pattern is set around the $2,555 level, representing a substantial upside potential.
Support Levels:
The key support level is near $2,495, which aligns with the head of the pattern. A break below this level would invalidate the pattern and may lead to further downside.
Key Levels to Watch:
Neckline Resistance: Around $2,534.
Target of Pattern: Around $2,555 if the breakout is confirmed.
Potential Trading Strategy:
Consider entering a long position upon a confirmed breakout above the neckline ($2,534), with a target around $2,555.
Place a stop-loss below the right shoulder or the head of the pattern to manage risk effectively.
Overall, the chart suggests a bullish setup with a potential breakout above the neckline that could lead to a significant upward move. The Inverse Head and Shoulders pattern supports a bullish outlook as long as the price remains above key support levels.
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Inverse Head and Shoulders Pattern:
The price action is forming an "Inverse Head and Shoulders" pattern, with the left shoulder, head, and right shoulder clearly marked. This pattern typically indicates a reversal from a downtrend to an uptrend.
The neckline of the pattern is located around the resistance zone at approximately $2,534.
Breakout Potential:
The price is currently trading near the resistance zone (neckline). A breakout above this level would confirm the pattern and could lead to a strong bullish move.
If the breakout occurs, the target of the pattern is set around the $2,555 level, representing a substantial upside potential.
Support Levels:
The key support level is near $2,495, which aligns with the head of the pattern. A break below this level would invalidate the pattern and may lead to further downside.
Key Levels to Watch:
Neckline Resistance: Around $2,534.
Target of Pattern: Around $2,555 if the breakout is confirmed.
Potential Trading Strategy:
Consider entering a long position upon a confirmed breakout above the neckline ($2,534), with a target around $2,555.
Place a stop-loss below the right shoulder or the head of the pattern to manage risk effectively.
Overall, the chart suggests a bullish setup with a potential breakout above the neckline that could lead to a significant upward move. The Inverse Head and Shoulders pattern supports a bullish outlook as long as the price remains above key support levels.
__________________________
✓✓✓ Always do your research.
❒❒❒ If you have any questions, you can write them in the comments below, and I will answer them.
❤︎ ❤︎ ❤︎And please don't forget to support this idea with your likes and comment
Note
it hasn't broken the neckline so this failed.
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