Is gold forming a double top pattern?
Gold had been in a steep uptrend since November 10, when the price bounced off the crucial 200-day simple moving average (SMA). The latest rally seems to be faltering though after bullion failed to surpass its five-month high of 2,009, but the short-term oscillators suggest that buyers have not given up yet.
Should the bulls attempt to push the price higher, the recent five-month peak of 2,009 could be the first barrier for them to conquer. A break above that territory could bring the April resistance of 2,032 under examination. Surpassing that region, bullion could then challenge the April-May resistance zone of 2,049.
On the flipside, bearish actions could send the price lower towards the July resistance of 1,987, which could serve as support in the future. Further declines might then cease at the October support of 1,954. Failing to halt there, gold could challenge its November bottom of 1,932.
In brief, gold’s failure to post a fresh higher high after testing its previous five-month peak is increasing the odds of a double top pattern. Should that scenario materialize, it could be the beginning of a downside correction.
Why December Markets Aren’t Quiet: Liquidity Shifts, Volatility, and Year-End Trading Dynamics
Yen slide sparks intervention warning, gold breaks above $4,400
The crypto market rebound is far from recovery
The crypto market rebound is far from recovery
Gold pushes into fresh record highs
EUR/USD: ECB Policy Stance Fails to Surprise Markets
Gold sets a record
