Discussion in 'Commodity Futures' started by EON Kid, May 20, 2010.
We took out the old high. IMO that makes the double top less likely from here. I think its setting up for a cup with handle. If it holds up decent while the market tumbles people are going to start looking to it for security.
But a 2B is based on the second top being slightly higher than the first, right? Anyway, I think this scenario might play out for a bit, but my guess is that it will end up being like gold at 1,000. A double-top led to a correction that was a good buying opportunity. Gold then it moved back up and blew out the old high.
So if Gold drops 10%-25% from here and later moves above 1200 again, Katie bar the door...
Sorry, I only use a few specific patterns/techniques. I thought you were just pointing out a double top. However, I find that a double top where the second hump is higher has a far less favorable probability of cracking. Just from my personal research. So I probably wouldn't trade a 2B.
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