Tuesday, September 6, 2011
GOLD about to drop?
Gold has formed a double top formation. A bearish engulfing candle has formed today signifying selling pressure. The Relative Strength Index showing very clear divergence between the two swings. This short setup has also formed on a 1900 key round number level which has also proven to be good resistance in the past. In my experience this is a a very bearish scenario. If the bearish engulfing candle breaks it's low at 1858 the next stop may be 1836. Watch for break of 1858 for downside momentum.
UPDATE: Price broke the 1858 low of the bar and is now at first minor resistance.
Posted by Razor at 8:59 PM