Will gold reach an all time high or will it rebound? for OANDA:XAUUSD by ForexTraderz
The monthly chart is really interesting as it shows how the price has rebounded from the same place previously creating a neckline. There is now a triple top, a reversal sign, so according to my analysis on this chart the trend should reverse to bearish . There are two necklines on the chart and both I’ve marked they both are aligned with the candles. I think we are in a sell zone as of now as the price has previously come here and dipped, yes on two occasions gone higher and then come back down. I believe that’s due to order blocks higher. There should be retracement and I’ve done this from 1912 as the 1886 had a retracement and I believe that invalidates that low. Each chart shows retracement at 61.8 to 1960 and 50.0 to 1950.
Now if we look at the 1hr that too has a triple top, if a top is slightly higher it is still part of the pattern given that it is within 3-4 percent of the double tops measurement. Also interesting enough is we have an imbalance on the 1hr near where the 61.8 fib falls at 1961. So it is highly likely that gold will revisit there. I will upload the 1hr chart to follow. We have to bear in mind the FOMC interest rate decision which is upcoming on Wednesday. Any comments on my analysis would be duly welcomed 🙂
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