gold initially broke our area of interest (AOI) 1903.955 while heading down and closed back above it on the weekly. This level is a a strong AOI since its been holding as support & resistance from previous months.
It closed with a long legged doji both on W1 & D1 which is a strong rejection candle. A shift in market structure happened when there was a formation of inverted LEFT head & shoulders pattern on H4 followed by a retest of the neckline which gave a strong bullish engulfing, hence buys all day long. From now on onwards the market is forming Higher highs & higher lows heading upwards. Entries can now be taken on retracements. We're now riding above the 50 EMA giving us added confluence on H4. Stops just below the marked zone targeting previous weekly highs.
It closed with a long legged doji both on W1 & D1 which is a strong rejection candle. A shift in market structure happened when there was a formation of inverted LEFT head & shoulders pattern on H4 followed by a retest of the neckline which gave a strong bullish engulfing, hence buys all day long. From now on onwards the market is forming Higher highs & higher lows heading upwards. Entries can now be taken on retracements. We're now riding above the 50 EMA giving us added confluence on H4. Stops just below the marked zone targeting previous weekly highs.