Gold: Double Top Analysis 4H (Apr. 28)

X FORCE GLOBAL ANALYSIS:


In our previous Gold analysis, we mentioned a high probability of a bearish case based on the bearish divergence on the daily. In this analysis, we zoom in to take a closer look at other bearish evidence.

Analysis

- We can first see that the two ascending trend line supports marked by the dotted red lines have been broken
- The ichimoku cloud has served as strong resistance throughout the uptrend, but it seems as though we are about to test and break through cloud support
- We have formed a double top on the 4H chart, which is a classic bearish reversal pattern
- The Relative Strength Index (RSI) shows weakness in trend strength, forming lower highs
- The Moving Average Convergence Divergence (MACD) also shows lower highs, with a death cross having recently formed


What We Believe

Despite the bearish pressure not being as strong as anticipated, we believe that potential for further bearish downside remains.

Trade Safe.