Forex Trading Library

Gold – Possible head & shoulders forming

By Steve O'Hare Last updated Feb 18, 2026

Monthly: The downward trending resistance line dominates medium term price action. A shooting star candle has been posted and further negative flows have continued. A symmetrical triangle contains the range since December 2015. We look for a possible re-test of the upward trending support line (1200 area)

Daily: Price action looks to be forming a head & shoulders formation. The reaction lower from 1320 is negative for sentiment and tentative support around 1300-1305 is expected to be re-tested. A break from here and subsequent break of the neckline could lead to an extended correction towards the 61.8% Fibonacci retracement at 1254.

Action: We look to Sell at 1312

Stop: 1332

Target: 1255 and 1235

Gold

Steve O'Hare

Steve has traded and analysed financial markets for over 30 years.
He started on the Baltic Exchange with Cargill Investor Services in 1987 trading Commodities. Following this Steve went on to work in a number of senior trading roles on LIFFE.
From 1995, Steve then traded his own account, specializing in European Fixed Income markets. For many years he ran his own proprietary trading company, facilitating and educating traders.
In 2012 he joined PIA-First and assisted in restructuring the company and help build it into one of the UK’s leading, award-winning independent research houses.

USD Recovers Ahead of Next Week’s Trade Talks

EURUSD Below Pre-Fed Levels