Hello traders, on Sunday I talked about the potential setup on gold in this weekend forex preview. Today I'm back to show you how the setup has played out after a retest.
On the 4 hour chart, the market is putting up a potential heads and shoulders pattern.
In the short term, opportunities for shorting this market will arise when price closes below the neckline around 1283.00- 1283.50. Head and shoulders pattern has a measured objective for a profit target which is usually the same distance from the neckline to the top of the head. See the potential profit target for this head and shoulders pattern below. However, note that the pattern will be confirmed after the market closes below the neckline. Conservative traders may even wait for a retest of the neckline as resistance after being broken.
Zooming out to the day chart shows further evidence that the market is about to tumble. The pin bar from Fridays's candle seems to suggest that bears are wrestiling control from the bulls.
Lets see how the market plays out. Follow me 