Gold With A Double Top On The 23,6% Fibo
Alpari Research & Analysis | Sep 17, 2018 06:22AM ET
Gold is really struggling to climb any higher. Buyers had great hopes and they still have great intentions but they just cannot increase the momentum after the bounce from the middle of August. Many traders are thinking that 1160 USD/oz is a hard bottom and we should not get any lower.
The correction that started on the 16th of August, stopped on the first important Fibonacci level -23,6%. Bulls tried to break that area twice and both times were unsuccessful. That creates potentially a very negative situation here. To estimate what will be the future of Gold, we need to carefully observe two dynamic supports. First one is mid-term up trendline (pink) and second one is the neckline of the double top formation (orange). As long as we stay above those two, buyers can still have hope.
Bearish breakout of those supports will bring us a strong sell signal and most probably a reversal. After the bounce from Friday (additionally shaped like a head and shoulders formation), chances for that are quite high.
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