Looking at the weekly chart below, we can see that the Gold price has been consolidating for the past couple of weeks. Is a pullback likely? We discuss a specific pattern formation on a shorter term 24 minutes chart later in the article. What is important is that the Gold price must hold $1185 – $1170 level when a pullback happens. This will also give an opportunity to establish a long position with a low risk perspective. Please read the disclaimer page on this blog.
Gold weekly chart:
Lets take a look at the shorter term 240 minutes chart. We have two pattern formations taking place here. A perfect Gartley formation took place at the $1250 level. This is illustrated by the blue shaded area. Next week, if the price gets below the $1204/oz level, it will confirm that we have the pattern formation illustrated in yellow in play. This pattern formation illustrated in the yellow shaded area will form a bullish Gartley pattern around the $1185/$1175 level. Also presenting a low risk entry level. Getting below this level the price could move much lower.
Gold price 240 minutes chart:
Good luck and prosperous trading!