This 1-hour Gold (XAU/USD) chart presents a Head and Shoulders pattern forming near the 3,124 level, indicating a potential bearish reversal. The structure consists of:
Left Shoulder – A peak followed by a retracement.
Head – The highest point in the formation.
Right Shoulder – A lower high, confirming the pattern.
Additionally, a Quasimodo pattern is forming, reinforcing bearish sentiment if price fails to sustain above 3,139. A breakdown below the neckline suggests a potential move toward the projected target zone at 3,039.
Key Levels & Trade Plan
📍 Resistance: 3,139 (Quasimodo level)
📉 Support Levels: 3,107 – 3,085 – 3,039 (Main target)
📊 Bearish Confirmation: Break below the neckline (~3,120)
🎯 Target Zone: 3,039
A clean breakdown below the neckline could accelerate bearish momentum, aligning with the projected drop of approximately 62.7 points (-2.02%). Bulls need to reclaim 3,139 for any invalidation of this bearish outlook. Keep an eye on price action confirmation before entering trades.
Left Shoulder – A peak followed by a retracement.
Head – The highest point in the formation.
Right Shoulder – A lower high, confirming the pattern.
Additionally, a Quasimodo pattern is forming, reinforcing bearish sentiment if price fails to sustain above 3,139. A breakdown below the neckline suggests a potential move toward the projected target zone at 3,039.
Key Levels & Trade Plan
📍 Resistance: 3,139 (Quasimodo level)
📉 Support Levels: 3,107 – 3,085 – 3,039 (Main target)
📊 Bearish Confirmation: Break below the neckline (~3,120)
🎯 Target Zone: 3,039
A clean breakdown below the neckline could accelerate bearish momentum, aligning with the projected drop of approximately 62.7 points (-2.02%). Bulls need to reclaim 3,139 for any invalidation of this bearish outlook. Keep an eye on price action confirmation before entering trades.
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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.
Related publications
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.