Double Top Pattern

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold seems to struggle to break through resistance zone at 1288-1290. A possible double top formation is spotted on the 1-hour chart, which may signal short term reversal. A breakdown under neckline at 1280-1281 can lead gold to test support zone at 1272-1274. Recent bounce from downward trend line also supports lower price action. Bearish divergence on RSI is a plus.

If gold trades above resistance zone at 1288-1290, this double top formation is invalid.

Trade active: Gold broke down under neckline.
Comment: Pattern is working as expected. Set stop loss above 1282-1283.
Trade closed: stop reached: Gold did not hit our expected target but reversed over neckline.
Trade active: Got in again at 1279. Double top pattern is still valid because the recent bounce from 1276 to 1285 did not exceed the double top at 1288.
Comment: Set first target at 1273, second target at 1267
Trade closed manually


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