The gold price has broken and remained above the neckline of the head and shoulders pattern at 1805, but there is a lack of momentum, as indicated by the RSI indicator, which shows divergence at the daily time frame.
That makes sense when it's almost touching a monthly trend line from March 2021,
I expect the scenario to go longer to reach the trendline and then bounce back to the neckline level at 1805, then reaches for a liquidity hunt down at 1790, then shoot back up to 1870, where a supply zone and resistance will be waiting.
Otherwise, if the price continues to fall below the neckline with high momentum, 1734 will be the next target.
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That makes sense when it's almost touching a monthly trend line from March 2021,
I expect the scenario to go longer to reach the trendline and then bounce back to the neckline level at 1805, then reaches for a liquidity hunt down at 1790, then shoot back up to 1870, where a supply zone and resistance will be waiting.
Otherwise, if the price continues to fall below the neckline with high momentum, 1734 will be the next target.
----------------------
Let me know your thoughts in the comments, and show your support by liking the idea.
Please follow if you're interested in more ideas like this.
Your support is greatly appreciated!
