Gold has Formed an Inverse H&S Bottom for a Retrace to at Least 1250.
Gold has formed an inverse head and shoulders bottom (red neckline) for a mandatory retrace to a megaphone VWAP at 1250.
It looks like gold may complete a megaphone right shoulder (blue) on the inverse H&S before getting going on its move. If not, it’s broken out.
Gold's Big Megaphone Bottom on the Daily/Weekly Charts.
Gold is working on a big megaphone bottom (blue on daily chart) for its move down out of the 2011 high. It could reverse at 1250 (green scenario) for a trip to the blue megaphone bottom.
Or it could blast right through 1250 (purple scenario) for a trip to the purple megaphone top before a retrace to the 1250 VWAP again to set up a breakout from the big inverse H&S on the chart.
Or it could start a new megaphone across 1250 that would eventually spin off new megaphones across 1250 (orange scenario) to form a triangle right shoulder (red) on the big inverse H&S on the chart.
Gold is Deciding Whether to Extend its Move Up (Purple Scenario) or Retrace to the Bottom of its Pink Rising Megaphone.
Essentially, gold is deciding whether to complete its long-term rising megaphone (pink) with a breakout to the formation bottom or extend its move up with an inverse H&S here before a move to a new high.