Confirmation of the Double Top - Longer Downtrend Expected

٢٨ أبريل ٢٠٢٠

This is a continuation on my earlier analysis on gold.

A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.

After Gold has been bullish for the whole week, we can finally see a trend reversal here after the price hit a resistance from 14th of April. At the same time, the world seems to be a bit more calm and the first countries are already loosening up their lockdown procedures.

This could be a moment where the need to put peoples assets in the safe haven of gold declines and where gold will slowly fall again.

We see that the double top just got confirmed over the last day by starting a consistent downtrend. The price follows a clean (almost parallel) descending channel. We slowly have to start looking at which levels the price will retrace to. So far the levels of around $1670 seem to be the most logical.

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!