Gold Market Breakdown: Unfolding Patterns and Key Price MovementGood morning Traders,
Trust you are doing great.
Allow me to continue my storyline of the Gold market.
In my previous analysis of the gold market, I identified two unfolding patterns with similar directional implications. While one pattern was invalidated, the other continues to develop as expected. I projected an appreciation in the gold price from 2370.930 to the 2430-2442 region, which has materialized with gold rallying to 2425.540, where it is currently encountering resistance.
Additionally, a new bearish Gartley pattern has emerged, suggesting a potential decline towards 2314.318 to complete the D-leg of the earlier identified unfolding bullish Gartley pattern. Supporting this bearish outlook are the following factors:
1. The current gold price has met the minimum requirement for leg C of the larger unfolding Gartley pattern, even though there are still room to the upside, but it shouldn't exceed 2436.857.
2. A fully formed smaller bearish Gartley pattern has been observed on the H1 timeframe.
3. The price is currently at a key supply zone that coincides with a critical level in our analysis.
Given these observations, I anticipate a significant drop in the gold price. However, if the price exceeds the maximum harmonic level for the formation of leg C of the unfolding bullish Gartley pattern at 2436.857, this outlook will be invalidated.
Cheers and happy trading!!!
