The above snapshot represents the daily chart of the yellow metal. it can be clearly seen that the head and shoulder formation might just be about to completed soon!
The main chart (4hr) shows the channel has been breached with EMA 50 adding further confluence to downward move which could target the potential neckline of the overall H & S formation.
Once the overall pattern is complete, its safe to say that this pair can potentially drop towards to 1267.000 level where the long term weekly ascending trendline lies!.
Looking at the big picture, i am overall LONG on GOLD, however i would only enter LONG once the price hits the 1270.000 area so the better risk to reward ratio is by my side. At the moment i am short on this metal. If you would to take short this yellow metal based on your own comfort and analysis i suggest the following trade entries:
ENTRY LEVEL: CURRENT PRICE 1300.000-1307.000
STOP LOSS: 1330.000 (ABOVE THE RIGHT SHOULDER)
TAKE PROFIT: 1267-1270 LEVELS
PLEASE FOLLOW THE ATTACHED LINK IF YOU WOULD LIKE TO TAKE THIS TRADE. I WILL BE UPDATING ANY CHANGES IN THE LINK ABOVE. cheers
