Triple Head (H&S) Completed - Gold Will Now Descend Into Channel

I already made a small joke about this head and shoulders looking more like a triple head in my previous analysis, and even though it did not play out very cleanly, we can see the right shoulder has been completed. The top ($1722) was slightly lower than you might have expected ($1740), but we are seeing a new downtrend starting now.

I expect the price to follow this downtrend for a while. A lot of people have put their money into gold as a safe investment, but will be slowly pulling it out of gold and into the stock markets again as the economy seems to recover from the Corona crisis.

The price did open with a bullish momentum, so keep your stop loss tight around the 1725 level. It could be great for your risk reward that the price has increased a little bit so you can short from a higher level. Don't wait too long before you enter this trade as your risk reward will reduce as it lowers more.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!