Gold is currently trading within a critical range near $3,300, where it is exhibiting signs of a bearish reversal, largely supported by the emergence of a Head and Shoulders pattern—a well-known classic reversal formation. This development is particularly significant, as it suggests a potential exhaustion of the recent bullish momentum and a shift in sentiment toward the downside.
Technical Overview
Current Range: Gold is consolidating around $3,300, which now acts as a pivotal zone.
Pattern Formation: A clear Head and Shoulders structure has been identified on the chart, with the neckline approximately around the $3,300 level.
Left Shoulder: Formed around the $3,310–$3,320 region
Head: Peaked near the recent highs around $3,350
Right Shoulder: Formed below the head, indicating waning bullish strength
Neckline Support: The neckline at $3,300 has now turned into a key area of support. A decisive break below this level could confirm the pattern and trigger a sharper decline.
Bearish Outlook & Targets
Upon confirmation of the breakdown from the neckline, the following downside targets are anticipated, based on standard Head and Shoulders projection techniques:
First Target: $3,270
A modest decline following the breakdown, aligning with recent short-term support zones.
Second Target: $3,240
A deeper retracement into previous consolidation territory.
Final Target: $3,200
Represents a full realization of the Head and Shoulders measured move. Also aligns with longer-term support and Fibonacci levels, increasing its technical significance.
Market Sentiment & Volume
Volume has shown signs of increasing on bearish candles during the right shoulder formation, which further validates the strength of this reversal pattern. Additionally, sentiment in the precious metals space is showing caution, with risk-off flows temporarily subdued, favoring the downside case in gold.
Technical Overview
Current Range: Gold is consolidating around $3,300, which now acts as a pivotal zone.
Pattern Formation: A clear Head and Shoulders structure has been identified on the chart, with the neckline approximately around the $3,300 level.
Left Shoulder: Formed around the $3,310–$3,320 region
Head: Peaked near the recent highs around $3,350
Right Shoulder: Formed below the head, indicating waning bullish strength
Neckline Support: The neckline at $3,300 has now turned into a key area of support. A decisive break below this level could confirm the pattern and trigger a sharper decline.
Bearish Outlook & Targets
Upon confirmation of the breakdown from the neckline, the following downside targets are anticipated, based on standard Head and Shoulders projection techniques:
First Target: $3,270
A modest decline following the breakdown, aligning with recent short-term support zones.
Second Target: $3,240
A deeper retracement into previous consolidation territory.
Final Target: $3,200
Represents a full realization of the Head and Shoulders measured move. Also aligns with longer-term support and Fibonacci levels, increasing its technical significance.
Market Sentiment & Volume
Volume has shown signs of increasing on bearish candles during the right shoulder formation, which further validates the strength of this reversal pattern. Additionally, sentiment in the precious metals space is showing caution, with risk-off flows temporarily subdued, favoring the downside case in gold.
Trade active
gold is running very crazy our given target hit more than 80% of its targets by just touching its head at 3350 and then made retest till 3230 and secured two main targets BULLISH SCENARIO: 400 pips in buy
BEARISH SCENARIO: 1200 pips in SELL
Trade active hold till last target 3200 Final TARGET
Trade closed: target reached
target reached successfully to given target
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.
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.