Historical Reference-
Example 01: Head & Shoulder Pattern on Gold -1 Hrs time frame:
In above example 01, one can see the H&S pattern appeared on June 1st week 2021 and it has hit the target. The target calculation is same as distance from neck line to the top of the head.
In above example 02, one can see the H&S pattern appeared on November mid 2021 and it has hit the target. The target calculation is the distance (pips) from the neck line to the top of the head.
Current Scenario
Gold has formed H&S pattern and has broken the neck line. If prices break below 1958 then it can heads towards the target of 1872 which is our target distance which we have calculated from neck line to head. Along with the Head & Shoulder Pattern we have taken into consideration of RSI & Volume for confirmation. There is clearly a volume expansion seen on 1 Hrs timeframe. RSI is showing a divergence which indicate there might be a pull back.
Comments: One can initiate a short position at current levels for a RR of 1:1.5 (See above image for Entry, SL & Target). Once position is triggered one can trail their SL accordingly
GOLD CFD: XAUUSD (OANDA): Analysis on 15th May 2022: Target Price Hit (1870) and made a low of 1860
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