Sell Gold at the rounding top edge !!

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A rounding top is a bearish chart pattern. One should sell around the edge of the rounding line drawn on the chart.

Gold made two lower highs and lower lows post making 52 weeks high in Dec 2023. A rounding top is formed and the third lower high is in making!

It is also going through a downward sloping channel (two blue parallel lines).

Hence Gold should retrace back and make lower lows. Pattern breaks above $2052 on closing basis.
If rounding pattern is not broken, lower levels can be seen at $1960-70 and $1930-35. If price action follows the parallel channel then also lower level is seen around $1970.

Trader may consider to go short for $50-60 odd dollars and look for further price actions for forthcoming levels.

Short Selling Zone: $2025-35


Hope our study will help you!





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