4H Gold Chart

zhao

Gold

4H Gold Chart




As seen in the above 4-hour chart, Gold has finished shaping a short term reversal pattern we've seen before, called a Head And Shoulders pattern. This pattern was confirmed on the RSI where the model is even more bearish as consequent lower highs were shaped.

The vertical neckline, highlighted in black, has been broken today below $1197 and this is a good sell signal. The target is the distance from the top of the head to the neckline, subtracted below the neckline. So the market aims for $1159 (highlighted in the red dashed horizontal line), which is $35 down from the current price at $1194.

Risk is above the neckline beyond $1200, which is >$6 of potential loss. The risk/reward ratio is almost 1:6.

Watch closely for the next support located at $1177 where a March 31st low and March 19th high were recorded. Once the market fails, you should be nimble to square shorts with gains booked.

If the bears fail and the price manages to close above $1200, the first level of resistance is located at the top of the head at $1224. The next levels can be found at $1252 (January 29th low) and $1307 (year high).

novice_trader

源济

谢谢分享！

Yuhou

laobei

Thanks for sharing