RLinda ! GOLD-> Medium-term perspective. Rollback. What's next?

3 oct 2022

Gold is in a zone where there is a struggle between the participants for their positions in the market and for determining the further movement. We see that the price is in the risk zone and forms a kind of consolidation - a movement without a definite trend.

On the global timeframe, the price has entered an important zone, which it has not tested for almost two and a half years. The September candlestick closes below the open, but after a false break-down of the liquidity zone a big enough candlestick tail is formed, which might hint at a supposed stop of the downward movement.

On the higher time frame (from one to several hours) we see the formation of a descending price channel and testing by the price of support, so if you pay attention and turn on your "imagination" we see the supposed formation of the pattern "Head and shoulders", as it has not finished its formation and at the moment we see the formation of shoulders base, when breaking it on the opposite movement will already be possible to think about a change in the trend.

I assume that the pullback may continue up to the previously tested support line, after which a new local reversal for the final formation of the pattern may follow. In the medium term I expect growth of the price up to the channel resistance.

Regards R. Linda!