Possible Head and Shoulders formation for gold...
Updated
We saw the recent weakness of XAU/USD validating the crucial level of 1263$ and fighting the mid-term trend line from 2016.
After creating a little support with a short pull back at 1242$ level it tried again to break and validate previous top at 1263,50$ but still hasn't achieved new highs.
At this moment short term momentum is bullish but mid-term he have no trend as we have slightly higher lows but no higher highs.
We can see a possible head and shoulders pattern or double top,depends on the way you see it,that can be created if XAU/USD retraces to 1222 level(1) wich is the 61,8 Fib level and a good support level plus the neck line of the head and shoulers formation.
If 1222(1) breaks which would be bearish for XAU/USD we are watching 1200(2) psycological level and in a less realistic scenario 1180$(3) level.
I believe a more violent correction will occur before breaking these levels and XAU/USD turn it's mid-term bullish enough to reach 1270 and 1300 levels.
Time will tell us.
BS AT 1268$ LEVEL
POSSIBLE TARGETS DEPENDING ON YOUR P/L RATIO
FIRST TARGET 1241-1242 LEVEL
SECOND TARGET 1222 LEVEL
THIRD TARGET 1200-1205 LEVEL
READ WHY THESE TARGETS FROM MY PREVIOUS ARTICLE ON XAU/USD BELOW!
HAPPY TRADING GUYS!!
After creating a little support with a short pull back at 1242$ level it tried again to break and validate previous top at 1263,50$ but still hasn't achieved new highs.
At this moment short term momentum is bullish but mid-term he have no trend as we have slightly higher lows but no higher highs.
We can see a possible head and shoulders pattern or double top,depends on the way you see it,that can be created if XAU/USD retraces to 1222 level(1) wich is the 61,8 Fib level and a good support level plus the neck line of the head and shoulers formation.
If 1222(1) breaks which would be bearish for XAU/USD we are watching 1200(2) psycological level and in a less realistic scenario 1180$(3) level.
I believe a more violent correction will occur before breaking these levels and XAU/USD turn it's mid-term bullish enough to reach 1270 and 1300 levels.
Time will tell us.
BS AT 1268$ LEVEL
POSSIBLE TARGETS DEPENDING ON YOUR P/L RATIO
FIRST TARGET 1241-1242 LEVEL
SECOND TARGET 1222 LEVEL
THIRD TARGET 1200-1205 LEVEL
READ WHY THESE TARGETS FROM MY PREVIOUS ARTICLE ON XAU/USD BELOW!
HAPPY TRADING GUYS!!
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