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Gold: Possible Double Bottom Pattern Formation

Published 12/05/2016, 08:50 AM
Updated 07/09/2023, 06:32 AM

Nothing has changed since December 2nd. Gold dipped below 1165 again, as expected on Friday, but support of 1156 is still not challenged. It now seems like gold has finally gotten its bottom area and is now ready to challenge first resistance band of 1190-1198. if 1156 remains intact, any dip below 1156 will give the way towards 1140 followed by 1120. The picture will be rosy only after clearing 1190, followed by 1198.

Gold 300 Minute Chart


It looks like gold is in the process of forming a double bottom pattern, but as I believe, any pattern is only worthy of consideration when it gives a break in desired direction and in this case, the break above 1190 is needed for a confident buying.

Let the market show the way, whether it proves to be a double bottom for bulls or antoher drop below 1156 for cheering faces of bears. Right now we are in bull camp with stop below $1156.

Resistance: 1190/1198
Support: 1156/1140

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