Gold Short Opportunity: Butterfly Pattern & Regular Divergence

4 oct.

I'm seeing a potential short setup on gold with a Butterfly pattern forming on the H4 chart. The key D point is at the 127.2% Fibonacci extension, indicating a likely reversal zone.

Additionally, the MACD shows regular bearish divergence (RD), suggesting weakening bullish momentum, which aligns with the potential for a downside move.

Trade Setup:

Pattern completion at: 127.2% Fibonacci extension
Bearish MACD Divergence: Signals weakening upward momentum
Timeframe: H4
Entry: Upon confirmation of reversal from D point (2700)
Target: 2600 (first target) and 2555 (extended target)
Stop-loss: 2712 for a more aggressive stop or 2736 for a safer position.

Keep an eye on price action around the 127.2% extension for a clear reversal signal to enter the short position!

8 oct.

Ordre annulé

Update: Gold Short Opportunity – Butterfly Pattern Incomplete

Although the pattern did not complete at the 127.2% Fibonacci extension, price action reversed earlier than expected and has hit the first target.