Is what I'm seeing an inverted head and shoulders pattern?
If so, this gleaming metal may be about to stop its downward trend!
Gold is preparing to test the neckline resistance at the $1,850 level, and a break higher might signal the start of an uptrend.
The technical signs, however, are now mixed. Stochastic is moving upward to indicate that there is bullish momentum, although the oscillator is approaching the overbought area.
The 200 SMA is above the 100 SMA, signaling a negative trend, but the distance between the two moving averages is closing, suggesting a probable bullish crossing.
Additionally take notice that both moving averages are trading above gold, which means that they can serve as dynamic support during drops.
Wait for the signs to align before rushing into a long position if you want to capture higher chances!
