Gold H&S Pattern Just Like Those In The Textbooks

Gold drew a beautiful pattern just like the ones that we read about in the technical analysis books. As seen on the H1 chart below, the precious metal made the left shoulder, went down to form the neck and proceeded with the head and the other shoulder going to neckline each time.

After it broke the support on the H&S, price declined to the long term support at $1,250 and then reached one more time to what is not H&S resistance, could not pierce it and depreciated again this time going below the 200SMA on H1 and the long term support at $1,250.

Currently Gold is trading at $1,245, going as low as $1,240. On one hand, Gold bears may try to break the previous low of $1,225, on the other hand, Gold bulls may attempt to close above $1,255 thus bringing Gold back into the short-term upward channel.

Chart: XAU/USD H1