GOLD Order Block Support and Inv SHS Pattern

Gold Technical Analysis and Trading  Strategy

1. Order block
2. Left shoulder
3. Head
4. Right shoulder
5. W H3 target

GOLD is in downtrend and we can see that it has been supported at the order block. Inverted head and shoulders formation provides us with potential buy the dips scenario. Money has moved to cash so we have to watch gold prices in the next couple of days, should there be a rebound. We should be keeping an eye on all Equities Markets, Gold, Bond Yields. Oil and gold prices rise with higher GDP growth and demand, especially from Emerging Markets and their central banks.

This is purely counter trend strategy trade. We should see a rebound if the 1795 holds. Have in mind that this is the NFP week and we need to be careful with the risk placement. Especially if we see a Yen strength (risk off scenario), Gold will bounce then. Equities down – gold up. Watch the chart and especially camarilla levels.

This analysis is a part of the Megatrend trading course. I have 1 long position that I will maintain. The intraday target is 1824 while the intraweek target is yet to be determined. There is no swing target yet but it might happen if the price breaks MH3 pivot.

Bottom Line

• Bullish SHS formation
• Order block support
• 1805 zone is buyers zone
• Buying the dips
• Counter trend setup

MEGATREND MAs: Bearish

Cheers and safe trading,

Nenad