Gold double bottom at support zone
Looks like Gold is making a double bottom here. The right part of the pattern is dropping a bit too fast, but it could slow down. With a double bottom, we want to see the left and right side of the pattern have the same size in time. So we want to see it move to the low in that blue circle, something like the red line. Now this is no exact science, but this is how it ideally plays out with a double bottom.
The target of the pattern is the yellow circle. It could simply turn down again there, but on the low time frame, we usually see some follow through if the rally is fast and strong. So maybe if the red resistance around 1302 breaks, we could see the blue line on the left play out, breaking out of that big triangle.
A safe play for a double bottom is waiting for the bull flag (orange circle)against the resistance of the neckline. When seeing a good rally towards that zone, it's almost a 80% sure chance to see it break up towards the target.
A max for the double bottom is around 1288. Bigger picture, a break of that level might bring it back down to that 1280 support, if that breaks, very likely to see it drop towards 1265/70.
Previous analysis:
The target of the pattern is the yellow circle. It could simply turn down again there, but on the low time frame, we usually see some follow through if the rally is fast and strong. So maybe if the red resistance around 1302 breaks, we could see the blue line on the left play out, breaking out of that big triangle.
A safe play for a double bottom is waiting for the bull flag (orange circle)against the resistance of the neckline. When seeing a good rally towards that zone, it's almost a 80% sure chance to see it break up towards the target.
A max for the double bottom is around 1288. Bigger picture, a break of that level might bring it back down to that 1280 support, if that breaks, very likely to see it drop towards 1265/70.
Previous analysis:
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