Gold Reversal in Motion: Head & Shoulders Breakdown

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Hi!

Market Structure
Gold has been moving inside a clean ascending channel, with price respecting both upper and lower boundaries for several days. Earlier in the trend, we saw the first compression phase along the dashed mid-line, which later fueled the strong push toward the channel top.

Liquidity Zone – Hunt or Breakout?
At the channel’s upper boundary, price tapped a key horizontal level. The spike above it looks more like a liquidity hunt than a real breakout—buyers were trapped, and the market quickly rejected from this zone.

Reversal Pattern – Head & Shoulders
After the rejection, a clear Head and Shoulders pattern formed exactly at the top of the channel
The neckline was positioned just above the dashed trendline. Once the neckline broke, momentum shifted sharply bearish, confirming the pattern.

Target & Expected Path
The chart shows the target of the Head and Shoulders, aligned perfectly with the lower boundary of the ascending channel. This creates a strong confluence around the 4,160 area.
The projected move suggests a possible minor pullback or neckline retest before continuing downward.

Overall, the chart signals a short-term trend reversal within a long-term bullish channel, driven by liquidity sweep behavior and a confirmed Head & Shoulders breakdown.

[Nahid Hossen]

Gold breaking a head & shoulders pattern is never a small signal — momentum shifting.