Gold has made a minor bounce after touching 1200 support area. A break out is due. NFP will be a game changer. If solid number comes out, gold might drop. If NFP is bad such as less than 150K, gold could run to the upside. I predict 2 scenarios for gold as charted.
1. First scenario :
Gold breaks out of the neckline and runs to the upside at 1242. This is an inverted head & shoulders pattern.
2. Second scenario :
If Gold breaks down the green trend line support, triangle pattern confirms. It may lead to a break down of support @1200- 1205. By using AB = CD pattern and the down channel, the target is around 1186.
With ADP number is in line with expectation, NFP number may be in line as well. Therefore, 2nd scenario is slightly favored as the downside. Still the unexpectation can happen. So watch out for both.
Stay Tuned.
1. First scenario :
Gold breaks out of the neckline and runs to the upside at 1242. This is an inverted head & shoulders pattern.
2. Second scenario :
If Gold breaks down the green trend line support, triangle pattern confirms. It may lead to a break down of support @1200- 1205. By using AB = CD pattern and the down channel, the target is around 1186.
With ADP number is in line with expectation, NFP number may be in line as well. Therefore, 2nd scenario is slightly favored as the downside. Still the unexpectation can happen. So watch out for both.
Stay Tuned.