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.