Head & Shoulders Pattern Forming – Gold Breakdown Soon?Gold ( OANDA:XAUUSD ) is currently near the Resistance zone($2,948-$2,940) . Gold attacked the Resistance zone($2,948-$2,940) several times but failed to break it and even created a Bull Trap .
Regarding Classical Technical Analysis , Gold seems to be completing the Head and Shoulders Pattern . If Gold reaches the Neckline of this pattern , it seems to succeed in breaking it. One of the signs of the validity of the Head and Shoulders Pattern is to see a Regular Divergence(RD-) between the two shoulders, which we see here.
According to the theory of Elliott waves , Gold seems to have succeeded in completing corrective waves. The structure of correction waves is Double Three Correction(WXY) .
I expect Gold to reach the Neckline of the Head and Shoulders Pattern in the coming hours, and if it breaks , it will drop to at least $2,901 .
Note: If Gold can go over the Resistance zone($2,948-$2,940), we can expect more pumps.
Note: If Gold touches $2,934, we can hope for a drop.
Do you think that Gold succeeds in forming a new All-Time High(ATH) or does it need to be corrected?
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Gold Analyze ( XAUUSD ), 30-minute time frame.
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