2B top on Gold

Discussion in 'Commodity Futures' started by EON Kid, May 20, 2010.

  1. your thoughts?

  2. ammo


  3. bkveen3


    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.
  4. 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...
  5. bkveen3


    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.