Gold’s inverted h/s formation target to 1240 was completed during the week of May 14 after breaking out in April. Recently we have seen gold retest and reattempt to breach this target area by making a new record high of 1254.5. This new high was made during the Globex session on June 8th and tested during the pit session with a high of 1253.0. The fact that the break above 1250 occurred during Globex gives the impression that the high was made to run stops thus hitting 1254.5. The market tried to test this high but failed during pit session trading and closed at 1244.7. Since then we have seen gold pull back to the 1223 level, as seen in the daily chart, the uptrend is still intact, and gold is in a strong bullish trend, however gold has set a double top. This double top will remain strong resistance and a profit taking opportunity unless bulls can reclaim and close above 1252.
RISK DISCLOSURE: PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS. AN INVESTOR COULD LOSE MORE THAN THE INITIAL INVESTMENT.