XAUUSD 1D H&S 21/09/2021

For a while now, I've had a potential high timeframe cup & handle mapped out on gold. This current price action may be putting that pattern into fruition.

We have seen gold plot an ABC pattern from it's previous high, with a fakeout of the channel (rejected at the 61.8% fib level) then continuation to plot a double bottom at the base of the mapped demand zone. Since then, a true breakout of the channel occurred and we have now pulled back for perfect bounces once again on both boundaries of the demand zone.

Locally, we see a potential H&S in the making, marked off by a possible higher low yesterday. Considering we have not reached the neckline yet, we are front-running this pattern in line with the bounces across all markets.

• The risk remains obvious and tight, at just below the previous local higher low.
  
• The RSI has now based several times off the lower boundaries and could be poised to show bullish momentum on this next thrust.
  
• BBWP formed a base on the head, increasing on the upward. This current higher low shows BBWP once again increasing - volatility is increasing.
  
• A daily closure above the highs of the previous 2 days confirms a short term reversal, which can either be played out or invalidated.
  
• Prime entries here would be on another wick down today and following intraday lower TF price action (without destroying higher low structure) or a breakout of the previous 2 days tops.
  
• Current targets are 1800 psyche level, the neckline of the H&S and the previous top of the macro range (~1900). Upon breaking the neckline, targets would extend to the measured move of 6.52%.
  
• Following a ~1900 breakout, range and macro complex double bottom / adam & eve targets may be looked at.