After a bounce at the down-sloping support(neckline) price moved back up. We were monitoring the move to the upside as it lined up with eleft shoulder.
On the 4hours time frame, the price chart of XAUUSD(Gold) has been spotted forming a bearish reversal chart pattern called THE HEAD AND SHOULDERS TOP.
The HEAD and SHOULDERS top is a bearish chart pattern that signals bearish reversal only when price closes below the neckline.
The most important part is that price must have something to reverse, so if the rise leading to the pattern is small, expect a small decline.
There is a bearish div also spotted as well.
The shape looks like a head perched atop two shoulders. A 3-peak pattern with the middle peak above the others. The pattern should look like a person's head and shoulders, proportional, and not lopsided.
The pattern confirms as a valid one when price closes below an up-sloping neckline or below the right armpit when the neckline slopes downward.
Price levels to keep an eye on should start from the completion of the right shoulder and price closing below the down-sloping neckline.
Completion of the right shoulder should be at $1487.589
Breakout: $1479.430
Support 1: $1463.799
Support 2: $1453.231
Support 3: $1437.019
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice
On the 4hours time frame, the price chart of XAUUSD(Gold) has been spotted forming a bearish reversal chart pattern called THE HEAD AND SHOULDERS TOP.
The HEAD and SHOULDERS top is a bearish chart pattern that signals bearish reversal only when price closes below the neckline.
The most important part is that price must have something to reverse, so if the rise leading to the pattern is small, expect a small decline.
There is a bearish div also spotted as well.
The shape looks like a head perched atop two shoulders. A 3-peak pattern with the middle peak above the others. The pattern should look like a person's head and shoulders, proportional, and not lopsided.
The pattern confirms as a valid one when price closes below an up-sloping neckline or below the right armpit when the neckline slopes downward.
Price levels to keep an eye on should start from the completion of the right shoulder and price closing below the down-sloping neckline.
Completion of the right shoulder should be at $1487.589
Breakout: $1479.430
Support 1: $1463.799
Support 2: $1453.231
Support 3: $1437.019
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice