Last week, I wrote about gold’s reversal potential.
If you saw Tuesday’s XAUUSD video, you’re well aware of why I thought the metal might reverse from the 1530/40 resistance area.
I also discussed gold in Saturday’s Forex Forecast video.
In fact, if you watched until the end of that video, you saw why last week’s reversal at 1536 was reasonably predictable.
But the more important topic of discussion was the potential head and shoulders pattern.
A daily close below the neckline at 1485/90 area was needed to confirm the bearish reversal pattern we’ve been discussing for several weeks.
That materialized on Monday.
Notice how XAUUSD closed Monday at 1472.
Keep in mind that I use New York close charts so that each 24-hour session opens and closes at 5 pm EST.
These charts are essential for trading price action from the daily time frame.
That means any retest of 1485/90 as new resistance is likely to attract sellers.
Now, that does not mean XAUUSD can’t move higher.
There are no guarantees in this business, and false breaks can and do happen.
However, as long as 1485/90 is intact as new resistance on a daily closing basis, I favor a move lower from gold.
As I mentioned last Tuesday and again on Saturday, the next key support level comes in at 1450.
It’s the mid-July swing high and also the 38.2% Fibonacci retracement of the year-to-date range.
A close below 1450 would open the door to 1410.
That’s the measured objective of this head and shoulders pattern and is also the 50% retracement of the same year-to-date range.
Alternatively, a daily close above 1490 would negate the short idea.
It would also re-expose last week’s high at 1536.
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Thank you, Sir !
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Hi Justin, thank you for giving us your Analysis. I’ve listened to a few of your videos and believe you only enter on a re-test of the 1485 Resistance area now that there has been a Daily Close below Support/Neck Line. If it does re-test that Resistance area do you look on lower time frames such as the 1/4hr?
Thank you for your help!
Bob
thank you sir
Great Analysis, I appreciate, ….. Thank you so much Sir. … So nice of you…. Many many regards for you
Good day Justine. Thank you for your forex insights. They are a great help to someone new like me. I would like to ask how to be a member of the group/follower of your live trade set ups. I’ve been fortunate to enroll in the basic and advance course of forex trading last year. Demo trading after and following you on telegram for sometime now (being subscribed to other teachers as well). But since I noticed that I tend to appreciate your unique style, I stopped subscribing from the others. I hope that you can continue to help me become a successful trader. Thank you and have a great day ahead
You are a good Forex analyst.Keep doing it.More Wisdom from God
Have been trying to raise money for Life Time membership but unfortunately it ended yesterday.Can you please extend the time. I will likely subscribe this Month. Thanks
A man of wisdom is always great, I have nothing to suggest rather but to thank Barnet for his deed.
Nice analysis…..Must Gold retest the 1485/90 area before heading lower?
Great analysis as usual. Thanks
Please check the email I sent you yesterday about DPA membership.
thank you sir justin for the up date.
Gold is going to 1355 with retraces but that’s where it going
Thank you, Mr Bennet, am grateful for what you’re doing. I learnt to trade almost a year now although am still learning but my charges monthly 200 pounds for exactly what you are doing. Thanks once more and I wish you stronger health.
As always thank you for your comments Justin! If it breaks 1454 I still think gold will hold at 1436-40 but breaking that, though 1412 does seem to support i don;t think its strong enough! 1360-66 is a better support which will hold! All depends on the upcoming NFP this week & the trade decisions betwenn US & CHina this month; not to mention Brexit Fiasco :lol
quá tuyệt
Is the XAUUSD head and shoulders still intact. It seems like it’s making a bullish pin bar at the moment for the daily chart.
You such a wonderful man send by God to uplift humanity. I have been following ur Forex analysis since one week now! Honestly ur are a genus as long as Forex is concerned and will never like to loose u. I’m a Nigerian leaving here Lagos and would like to learn more from u thanks.
Hi there! I think the market makers have just validated that head and shoulders to induce retail traders short. IF YOU ARE ALRAEDY SHORT ON GOLD, YOU ARE TOO EARLY. THEY ARE COMING FOR YOUR STOP-LOSS this month ( false move Q4 beginning). then they will form the high of the quarter, while consolidating the high of the year, and then they will reverse for the remainder of 2019….