Gold Short Opportunity: Butterfly Pattern & Regular Divergence
I'm seeing a potential short setup on gold with a Butterfly pattern forming on the H4 chart. The key D point is at the 127.2% Fibonacci extension, indicating a likely reversal zone.
Additionally, the MACD shows regular bearish divergence (RD), suggesting weakening bullish momentum, which aligns with the potential for a downside move.
Trade Setup:
Pattern completion at: 127.2% Fibonacci extension
Bearish MACD Divergence: Signals weakening upward momentum
Timeframe: H4
Entry: Upon confirmation of reversal from D point (2700)
Target: 2600 (first target) and 2555 (extended target)
Stop-loss: 2712 for a more aggressive stop or 2736 for a safer position.
Keep an eye on price action around the 127.2% extension for a clear reversal signal to enter the short position!
Additionally, the MACD shows regular bearish divergence (RD), suggesting weakening bullish momentum, which aligns with the potential for a downside move.
Trade Setup:
Pattern completion at: 127.2% Fibonacci extension
Bearish MACD Divergence: Signals weakening upward momentum
Timeframe: H4
Entry: Upon confirmation of reversal from D point (2700)
Target: 2600 (first target) and 2555 (extended target)
Stop-loss: 2712 for a more aggressive stop or 2736 for a safer position.
Keep an eye on price action around the 127.2% extension for a clear reversal signal to enter the short position!
Order cancelled
Update: Gold Short Opportunity – Butterfly Pattern Incomplete
Although the pattern did not complete at the 127.2% Fibonacci extension, price action reversed earlier than expected and has hit the first target.
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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.