Asim99_

Gold double top formation + bearish MACD + EMA50 in favour

Short
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold is heavily overpriced at the moment and although it is fundamentally driven, I have spotted a major valid reversal pattern in the form of a double top. It is seen across multiple timeframes including the 1H but it is most clear in the 15 minute chart. I have marked out the neckline of the double top, and as you can see it has been rejected twice in the last two 15 minute candles. This to me shows that price is trying to break out and knowing that gold is already due for a massive correction to <$1500 before it is at a long term price of $2,000+ per ounce, the technical analysis provides further confluence to a drop. Also regarding confluence, I can see that the EMA 50 has finally moved above the current price action indicating we should be looking for a setup to short Gold against the dollar. In addition to this, the MACD lines and histogram are also showing bearish momentum which provides further confluence to price exhaustion meaning the commodity is all set for a massive correction and should drop very heavily. Albeit I am assuming there will still be choppy price action at this level, purely based on the fact that it is a double top formation and gold is at the highest price it has been for the last 8 years so market makers will try to get impatient retail traders to close their positions in fear of a further bullish move up by gold and so they'll close in a small profit/loss rather than be on the banks side of the giant correction of the overpriced Gold move down.
Hope this makes sense to you all and if you have any questions/counter arguments feel free to contact me!

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