Gold has pulled back from the $2,940 level, which it tested twice, to form what appears to be a double top pattern. Since reaching this peak, prices have pulled back to $2,882, a key support area that previously acted as resistance on two occasions. On an uptrend, such pullbacks often present buying opportunities as previous resistance levels turn into support.
If the $2,882 support level holds, gold could regain momentum and resume its primary uptrend. However, a drop below the $2,863 level could invalidate this outlook, potentially opening the door for further downside pressures.
Double Top (M)
• The double top chart pattern is a bearish reversal formation that occurs when the price of an asset reaches two peaks at similar levels, separated by a decline, signaling a potential reversal in the trend once the price drops below the neckline support line.
• The psychology behind this pattern involves initial buyer enthusiasm driving prices to a peak, followed by a pullback creating hesitation, and eventually a second failed attempt to surpass the first peak, indicating a shift in sentiment as sellers gain control.
If the $2,882 support level holds, gold could regain momentum and resume its primary uptrend. However, a drop below the $2,863 level could invalidate this outlook, potentially opening the door for further downside pressures.
Double Top (M)
• The double top chart pattern is a bearish reversal formation that occurs when the price of an asset reaches two peaks at similar levels, separated by a decline, signaling a potential reversal in the trend once the price drops below the neckline support line.
• The psychology behind this pattern involves initial buyer enthusiasm driving prices to a peak, followed by a pullback creating hesitation, and eventually a second failed attempt to surpass the first peak, indicating a shift in sentiment as sellers gain control.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.