Gold’s Bright Blue Rising Megaphone Means a Retrace to at Least VWAP of its Navy Blue Megaphone, Likely After a Higher High
Gold has put in a rising megaphone top (bright blue on chart) to complete its navy blue megaphone and get back to its pink megaphone top.
Gold would usually put in a higher high within the bright blue rising megaphone before breaking out downwards from it.
A breakout from the rising megaphone targets at least the navy blue megaphone VWAP. A trip to the navy blue megaphone VWAP would put an H&S on the chart with a neckline at that VWAP.
Usually that would lead to a breakout downwards through VWAP and a trip to the bottom of the navy and pink megaphones. After that, gold would need to retrace to its navy megaphone VWAP to be legal for a breakout downwards to the bottom of a larger megaphone at roughly 1000.
If gold breaks out through VWAP on that retrace, it should melt up to the pink megaphone top and break out enough to put a topping pattern up there.