The six-month chart of the gold price shows a strong increase since the turn of the year, which has led to a classic double top formation since mid-April.
The second high point is below the first, and a neckline has formed at about 3200 US dollars. If this is breached downwards, it would activate a price target corresponding to the vertical extension of the double top above the neckline projected downwards – i.e., the area slightly below 3000 USD. This is also where the support from April and the resistance from February (lower gray line) are located. Moreover, the gold price would again be in the range of the 100-day line, where it ultimately found support in the winter months.
Both average lines continue to rise – moreover, the 100-day line pleasingly runs steadily above the 200-day line.
MACD and Stochastics have already generated a sell signal, whereas the trend confirmer still remains above the neutral 100 in positive territory.
Source: Comdirect
