We are seeing a long-term upward trend in gold launched in August 2018. Fundamentally valuable metal was supported by Federal Reserve operations, seasonal demand in early 2019, and safe haven investors' escapes during strong sell-offs of shares.
What's already out there is a potential technical configuration that can trigger a deeper level of up to 50 Fibonacci, Head and Shoulders. For the moment, the price has made a successful breakthrough in the diagonal with a clear and powerful sword candle, with a retention of less than 23.6 Fibo ($ 1302.92) and a 50-times average. We currently have a short-term consolidation, with the price moving between a nonlinear (red line) and a zone around 1294.55 (two blue lines) in Zone 1.
In the event of a bearish flag configuration (marked with white lines), a non-cyclical breakthrough can be catalysed to initiate a correction to Fibonacci level 50 - Zone 3. This will reveal an aggressive short position input. Alternatively, we can wait for a test to Zone 2, where we can position ourselves with short positions to grab the higher downward movement.
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