Gold has failed to break a new all-time high last week, and only reached as high as $1,423 an ounce. As a result of the failed attempt, a bearish correction took place, and gold fell to $1,352 an ounce within three trading days. Nevertheless, the 4-hour chart shows that a double top pattern is forming meaning that gold may reach $1,410 an ounce before the end of the week.
• The chart below is spot gold 4-hour chart by ForexYard.
• There is a very distinct bearish channel forming on the chart. The channel reached its bottom yesterday after falling to the $1,352 level.
• During today’s trading session spot-gold managed to correct some of its losses, and is currently trading near the $1,382 level.
• In addition, there seems to be a double top pattern forming on the chart. If the formation appears, gold has the potential to bounce back towards $1,410 an ounce.
• In addition, a bullish cross on the MACD further shows that another bullish session may occur.
• However, the Slow Stochastic is about to complete a bearish cross and the RSI is on the verge to fall below the over-bought zone. This means that if gold will fail to cross the $1,390 resistance level, a bearish correction might take place.
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Yan Petters is a top analyst of market trends who specializes in the forex market. Yan has a reputation for composing highly accurate analytical reports, both technical and fundamental. Yan Petters' ground-breaking perspectives on currency trends are highly valued by his colleagues and clients and has been a featured author on a number of influential trading sites. Yan Petters is an author for the ForexYard blog
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