A Double Top Pattern In Gold – Time To Sell?

The precious metal gold has continued to trade in an exaggerated way in the early Asian sessions with solid support from a weaker dollar and ongoing political uncertainties surrounding the U.S. economy. The bullion market got further support from reports that a senior current administration executive was a person of interest in the ongoing inquiry into Russian links with Donald Trump.

However, just like forex, the commodity market is also on hold today as most investors are waiting for a fresh driver to spread volatility in the market.

Yesterday, our forex trading signal in gold remained a success and the prices traded as per our predictions in Ascending Triangle Pattern – Potential Trade In Gold, where we advised having a buy position only above $1258 with a stop loss below $1255 and a take profit of $1262.

Let us recall the trading levels for Gold and WTI Crude because the market is following precisely the same points to reverse.  

Forex Trading Signal

I'm eying the $1263 for a sell position, placing a stop loss at $1265 and a take profit at $1257.

On the flip side, traders could take up a buy position above $1264, with a stop loss below $1261 and a take profit at $1269.

Ascending Triangle Pattern – Gold Hourly Chart

Technical Outlook – Intraday

In the absence of major fundamentals, the market is trading on a technical basis. We can see on the 4-hour chart, the gold has formed an ascending triangle pattern which is extending a strong support at $1257.

On the other hand, the metal is facing a resistance at $1263, the double top pattern. Usually, double top patterns push the market lower, but in this case, it's an ascending triangle pattern. As discussed earlier, ascending triangle patterns are meant to break upward.

Anyways, let's wait for the latest macroeconomic events from the United States, as they may offer us additional clues about the trend.