📉 Gold Technical Outlook – Double Top in Play
Gold has recently formed a double top pattern, which is a classic bearish reversal setup.
A double top occurs when price reaches a resistance level twice and fails to break above it. This creates two peaks at nearly the same level — indicating strong selling pressure and a potential shift from an uptrend to a downtrend.
In this case:
The two tops suggest that buyers are losing strength.
Once the neckline (support level between the two tops) is broken, a downward trend usually begins.
The market is currently moving downward after the failure to break the recent highs.
🔻 Bearish Targets (as long as price stays below 3450):
Target Number Price Level
🎯 1st Target 3240
🎯 2nd Target 3120
🎯 Final Target 3030
❌ Invalidation Level (Negated Scenario)
This bearish view becomes invalid if gold moves above 3450 — in other words, a strong daily/4h close above 3450 would cancel the double top setup and signal a possible bullish breakout instead.
📝 Double Top Pattern – Quick Explanation
The pattern looks like the letter “M” on the chart.
It is formed by two consecutive swing highs at approximately the same price level.
The bottom between those highs forms the neckline (support).
When price breaks below the neckline, it confirms the pattern.
After confirmation, traders expect a trend reversal and place downward targets.
In simple terms — the market tried to go higher two times and failed, so now sellers are taking control.
Great — here is a simple diagram to help you visualize the double top pattern:
⛰️ ⛰️
/ \ / \
/ \ / \
/ \ / \
-----/--------\/--------\------ ⇦ resistance (two tops)
| |
| |
| |
-----\________/---------------- ⇦ neckline (support)
🔻 Breakdown below the neckline
Explanation:
The two ⛰️ peaks at the top represent the double top — price reaches the same resistance level twice and gets rejected both times.
The horizontal line in the middle is the neckline (support area).
When the price breaks below the neckline, it confirms the pattern and indicates that sellers have taken control → downtrend begins.
Gold has recently formed a double top pattern, which is a classic bearish reversal setup.
A double top occurs when price reaches a resistance level twice and fails to break above it. This creates two peaks at nearly the same level — indicating strong selling pressure and a potential shift from an uptrend to a downtrend.
In this case:
The two tops suggest that buyers are losing strength.
Once the neckline (support level between the two tops) is broken, a downward trend usually begins.
The market is currently moving downward after the failure to break the recent highs.
🔻 Bearish Targets (as long as price stays below 3450):
Target Number Price Level
🎯 1st Target 3240
🎯 2nd Target 3120
🎯 Final Target 3030
❌ Invalidation Level (Negated Scenario)
This bearish view becomes invalid if gold moves above 3450 — in other words, a strong daily/4h close above 3450 would cancel the double top setup and signal a possible bullish breakout instead.
📝 Double Top Pattern – Quick Explanation
The pattern looks like the letter “M” on the chart.
It is formed by two consecutive swing highs at approximately the same price level.
The bottom between those highs forms the neckline (support).
When price breaks below the neckline, it confirms the pattern.
After confirmation, traders expect a trend reversal and place downward targets.
In simple terms — the market tried to go higher two times and failed, so now sellers are taking control.
Great — here is a simple diagram to help you visualize the double top pattern:
⛰️ ⛰️
/ \ / \
/ \ / \
/ \ / \
-----/--------\/--------\------ ⇦ resistance (two tops)
| |
| |
| |
-----\________/---------------- ⇦ neckline (support)
🔻 Breakdown below the neckline
Explanation:
The two ⛰️ peaks at the top represent the double top — price reaches the same resistance level twice and gets rejected both times.
The horizontal line in the middle is the neckline (support area).
When the price breaks below the neckline, it confirms the pattern and indicates that sellers have taken control → downtrend begins.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.