Double top setting up in Gold
After an amazing run capped by a high
on the February contract of Comex Gold (GCG6) formed on December 12,
2005. Gold pulled back violently, breaking below a number of shorter term
bullish support areas. This subsequent retest of the highs, followed by today’s
candle is an ominous sign for the next few weeks for the metal. I see a lot of
traders get trapped trying to play double tops, when in fact it is a strongly
trending market. However, from a technical perspective, this daily candle needs
to be treated with extreme caution for gold bulls out there.
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