RLinda ! GOLD-> H&S formation stage. What to expect?

6 Jan 2023

Gold is down 2.2% from its high. Technically, this is a reaction to a false breakout of strong resistance. What's next?

Yesterday I told you, there is a high probability of a technical pullback, the price goes down towards 1824, but it does not reach the zone, so the technical pullback forms and the price draws an interesting "Head & Shoulders" pattern, based on the false-break and the resistance. I think that if this pattern holds, the price can reach both 1824 and 1807 in the nearest future.



The situation is tricky, if the price breaks 1843 and rallies above it, there is a chance of rising to 1858 and trying to break the resistance at 1858.
But if the right shoulder of the "Head & Shoulders" pattern confirms, if the price consolidates under 1843, there is a chance to go down to 1807

Regards R. Linda!