Chart of the Week, Gold: XAU/USD on verge of a 38.25% Fibo correction
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- Gold has run into resistance and a correction prior to the next bullish impulse would be expected for the open.
- Gold bulls have eyes set on a higher high for the week ahead following the restest of the critical structure.
As per the prior analysis, Chart of the Week, gold: XAU/USD bulls moving in, carving out bullish structure, the price rallied into the M-formation's neckline.
Gold, daily chart, prior analysis
The M-formation was a pattern identified in the prior analysis:
''This is a reversion pattern and the neckline of the formation would be expected to lure in the price. A break of the March 10 highs, near $2,010, will clear the path for 'blue skies'.''
Gold, live market
The price broke the consolidation highs and has rallied into the vicinity of the neckline area where is now stalling at. The 38.2% Fibonacci retracement level of the bullish impulse has a confluence with the prior highs and old resistance. This would be expected to be retested and if it were to hold, then a bullish continuation would be a high probability.
Gold, H4 chart
The price is retesting the neckline of the four-hour chart's M-formation. Failures to close above it would be expected to see a fuller correction to the 38.2% Fibo.
- Gold has run into resistance and a correction prior to the next bullish impulse would be expected for the open.
- Gold bulls have eyes set on a higher high for the week ahead following the restest of the critical structure.
As per the prior analysis, Chart of the Week, gold: XAU/USD bulls moving in, carving out bullish structure, the price rallied into the M-formation's neckline.
Gold, daily chart, prior analysis
The M-formation was a pattern identified in the prior analysis:
''This is a reversion pattern and the neckline of the formation would be expected to lure in the price. A break of the March 10 highs, near $2,010, will clear the path for 'blue skies'.''
Gold, live market
The price broke the consolidation highs and has rallied into the vicinity of the neckline area where is now stalling at. The 38.2% Fibonacci retracement level of the bullish impulse has a confluence with the prior highs and old resistance. This would be expected to be retested and if it were to hold, then a bullish continuation would be a high probability.
Gold, H4 chart
The price is retesting the neckline of the four-hour chart's M-formation. Failures to close above it would be expected to see a fuller correction to the 38.2% Fibo.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.