@adamyoung10 on XAUUSD | PriceONN Community
XAUUSD is showing a potential head and shoulders pattern forming on the hourly chart. The neckline seems to be around 5130. If price breaks below this level with confirmation, we could see a significant drop. I'm waiting for a clear break and retest before considering a short position. Anyone else seeing this?
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Update: Looking at the 4-hour chart, the head and shoulders pattern is even clearer now. The volume is also starting to pick up on the downside, which adds further confirmation to the potential breakdown. My initial target would be around the 5100 level, coinciding with S2. I'll be monitoring the price action closely as we approach the neckline. A stop loss above the right shoulder would be a prudent risk management strategy. I'm considering a tight SL around 5155. Let's see how this plays out.