Gold Reversal Pattern

Here on Gold we have a tentative (in the making) Head and Shoulder pattern, it is not confirmed yet. Between the head and the right shoulder we have a triangle forming. Triangles are not necessarily continuation patterns, we trade triangle both ways, however we do go for the higher probability setups, looking at where the triangle is forming within a channel or near support or resistance areas.

This is for informational and educational purposes only.

Happy trading

Note

Small correction, the high of the right shoulder was not yet confirmed and thus the line forming a triangle is incorrect (for now). The horizontal line from the left shoulder is more likely to be the high of the right if this tentative H&S is going to play out. Alternatively breakouts higher can but the bulls back in full swing, might be a breather period.

Note

Price did break the neckline but failed to make it down to the target area. Price did hit a previous resistance area around 12-14 Jan 2022, this area acted as support and we call it change of polarity principle - Support change to resistance or resistance change to support. The price is for now below the HS neckline and time will tell if this price will continue down. Our bias bearish for now due to lower low and lower high.

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