Possible GOLD pullback?

3 Jan

GOLD
Gold has formed an Head and Shoulders pattern on the chart and is currently retesting the support at 2055. This support also serves as the Head and Shoulders neckline, and a breakout under it will likely result in further downturn towards 2030. However, the market is still bullish on all timeframes, so we can expect further upside after correction.

RSI is currently in divergence, singnaling correction after an long upward movement. Furthermore, OBV (On Balance Volume) has been decreasing since late 2023, showing dwindling volume from bulls and low momentum.

These signals are very bearish for Gold, which is why I am expecting an support breakout and an corrective movement towards 2030, the next key support level.