Gold can Complete its Topping Pattern and Fall

[Antony Bishop]

Hello traders, I want share with you my opinion about Gold. The market has been developing a complex consolidation structure after its initial uptrend failed to sustain momentum. After breaking out of a first range, the bullish impulse failed, leading to a breakdown below the major ascending mirror line and establishing the current, higher second range. The price action for XAU has since been contained within this new consolidation, repeatedly testing the upper resistance and lower support boundaries. Currently, the asset is again testing the upper boundary of this range, an area that has consistently attracted sellers. In my mind, this price action is forming a complex topping pattern. I expect that the price will be rejected from the top of the current range, perhaps after a brief interaction with the nearby mirror line, and then fail at the highs one more time. I think this final failure will trigger a significant decline with enough momentum to break the mirror line support decisively. Therefore, I have placed my TP at the 3630 current support level, targeting the bottom of this second range.