Gold: Broadening Top Pattern Analysis 1H (Apr. 24)
X FORCE GLOBAL ANALYSIS:
Gold has shown incredible momentum since our bullish bat harmonic pattern analysis. In this chart, we assess a potentially bullish broadening top pattern on the hourly chart.
Bullish Evidence
- Based on Elliott Waves, we can count the completion of Impulse Waves (12345)
- Inside the broadening top pattern, we can count Elliott Triangle Waves (ABCDE)
- We have seen a bullish hammer candle form right before, demonstrating buyer interest
Bearish Evidence
- The Relative Strength Index (RSI) shows a downtrend, with the creation of lower highs and lower lows
- The Moving Average Convergence Dviergence (MACD) shows increasing bearish histograms
- The broadening top could also be a bearish pattern
- We have strong resistance above the broadening top's ascending trend line resistance
What We Believe
Should the broadening top's trend line support hold - even better if the 0.236 Fibonacci support holds as well - we could see a potential breakout attempt for Gold. However, a break and close below the descending trend line support would confirm a bearish pattern.
Trade Safe.
Gold has shown incredible momentum since our bullish bat harmonic pattern analysis. In this chart, we assess a potentially bullish broadening top pattern on the hourly chart.
Bullish Evidence
- Based on Elliott Waves, we can count the completion of Impulse Waves (12345)
- Inside the broadening top pattern, we can count Elliott Triangle Waves (ABCDE)
- We have seen a bullish hammer candle form right before, demonstrating buyer interest
Bearish Evidence
- The Relative Strength Index (RSI) shows a downtrend, with the creation of lower highs and lower lows
- The Moving Average Convergence Dviergence (MACD) shows increasing bearish histograms
- The broadening top could also be a bearish pattern
- We have strong resistance above the broadening top's ascending trend line resistance
What We Believe
Should the broadening top's trend line support hold - even better if the 0.236 Fibonacci support holds as well - we could see a potential breakout attempt for Gold. However, a break and close below the descending trend line support would confirm a bearish pattern.
Trade Safe.
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