Gold Double-Top at Top of Channel
The gold fell and trade lower amid a double top last week but pulled back significantly on the last trading day.
About two months ago since the huge selloff, the price took about one month to recover and even broke higher.
The recovery was definitely extensive and overbought which led to a 3-week range up till now.
Since it is clear that the price is trading at the high, we will focus on selling the gold with some potential downside.
From the perspective of moving averages, the price has a tendency to trade beyond the 50MA, showing that there's enough downside to form a short-term bearish trend.
Besides, a double top was forming in the daily chart at the overbought zone as well as the top of the rising channel.
The pullback last Friday has most likely taken out most sellers who attempted to sell amid the double top and thus it is a good price to sell currently.
About two months ago since the huge selloff, the price took about one month to recover and even broke higher.
The recovery was definitely extensive and overbought which led to a 3-week range up till now.
Since it is clear that the price is trading at the high, we will focus on selling the gold with some potential downside.
From the perspective of moving averages, the price has a tendency to trade beyond the 50MA, showing that there's enough downside to form a short-term bearish trend.
Besides, a double top was forming in the daily chart at the overbought zone as well as the top of the rising channel.
The pullback last Friday has most likely taken out most sellers who attempted to sell amid the double top and thus it is a good price to sell currently.
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