Will gold break out after the correction?
Gold prices have recently formed a typical head and shoulders top pattern, which usually suggests that prices may fall, especially after breaking through the neckline.
Left shoulder, head and right shoulder: The left shoulder, head and right shoulder are marked in the figure. This is a classic head and shoulders top pattern structure. The left shoulder and right shoulder form lower price peaks, while the head forms a higher price peak, which indicates that the momentum of price increases is weakening and may foreshadow a price pullback.
Neckline breakthrough: When the price breaks through the neckline, this pattern is usually considered a strong sell signal. Although the price has not completely broken through the neckline, the market is close to this level, indicating that downward pressure is increasing.
Price channel: The price fluctuates within the channel, which means that the gold price has been in a relatively stable fluctuation range for a period of time. However, as the price approaches the lower track of the channel and forms a head and shoulders top pattern, it implies that the downside risk is increasing. If the neckline is broken, the gold price may fall further, especially the target area is around 2880. The downward price will likely be supported by stronger, especially the 2880 area.
Today's operation suggestions:
Short strategy: When gold rebounds to 2930-2925, short layout, stop loss 2942. Downward targets 2905, 2900.
Long strategy: Gold low participation around 2895-2890, stop loss 2880. Upward target 2915-2922
Trade active
Gold fell back to 2930 today and continued to weaken under pressure, eventually reaching 2890. This wave of market also successfully exited near 2900, and TP took 250 points.
Then the gold price formed a V-shaped rebound, which also allowed us to TP again and take 120 points when we entered the market for the second time. These two waves of market were also perfectly captured. At present, the end of the market has entered the energy consumption stage. Although the short-term trend is weak, we cannot blindly look down on the subsequent trend. Pay attention to the resistance of the 2930-2925 area above. If the rise is under pressure, participate in the short-term layout.
The short-term support below is 2905-2900
Free signal channels: t.me/+yFMLjJ7YsQ84OGJk
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.
Free signal channels: t.me/+yFMLjJ7YsQ84OGJk
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.