GU Daily Chart
I have mentioned the daily targets quite often over the last week or so. Price has tested the 1st daily target (head and shoulders target) of 4900. The next port of call is the daily bear flag target of 4650.
GU 1 hour Chart
As price moves in waves on the smaller time frame charts, we can see that the 1 hour chart has formed a bear flag as well, with the target being about 4480.
GU 15 Minute Chart
Drilling down to the 15 minute chart, the GU has formed a head and shoulders pattern targeting 4800. If a trader decides to play the head and shoulders pattern on the m15, it is important to plot the support areas before entering according to standard recommendations. This is all an example of how the market moves in waves on the smaller time frame charts in order to reach the longer term targets.
Note*** If price moves above the 5020 area, it is possible the GU will go for a larger retracement possibly to the 5200 – 5300 area.
