Potential Reversal in Gold After Completing Widening Formation

13 Nis

hello guys!

The 4H Gold/USD chart exhibits a classic Broadening Formation (also known as a Megaphone Pattern), marked by higher highs and lower lows, reflecting increased volatility and market indecision. This pattern is identified with three key swing points on both the upper and lower trendlines:

• Point 1 and Point 2 formed the initial boundaries of the pattern.
  
• Point 3, recently touched, completes the structure by testing the upper boundary of the formation near $3,238, suggesting a potential bull trap, as illustrated in the schematic overlay.
  

just look at:

1. The price has sharply rallied to the top of the widening pattern, aligning with the third high, often a strong signal for reversal in this setup.
   
2. A rejection from this level is anticipated, supported by the bearish projection arrows targeting multiple demand zones.
   

Bearish Target Zones:
$3,180 – $3,160: Previous consolidation zone.
$3,140 – $3,120: Mid-pattern volume area with past price sensitivity.
$3,060 – $3,040: Major support zone with a strong volume node and previous reaction area.


Volume Profile Insight:
The volume profile shows significant activity in the $3,040 zone, reinforcing it as a major demand area where buyers might step in again.
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Summary:
This setup suggests a potential bearish correction after a strong upward move. If price action respects the pattern, traders may look for short opportunities from current levels with the outlined targets. Watch for confirmations such as reversal candlesticks or breakdowns of minor support levels.

13 Nis

Not

I say again, we need confirmation here to get shorts, just wait until we see a reversal

18 Nis

Emir iptal

The confirmation didn't happen!