https://www.thegoldandoilguy.com/wp-content/uploads/2019/07/136.png 590 865 admin http://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.png admin2019-07-17 21:22:282019-07-17 21:22:28Double Top In Transportation and Metals Breakout Are Key Topping Signals
Our researchers identified this critical Double-Top pattern in the Transportation Index after a very strong price rally on Friday, July 12. Double-Top patterns are very important in terms of Fibonacci price structure because they reflect a complete price rejection at a certain price level. In this case, the TRAN Double Top level is $10,655 and our research team believes weakness at this level will push a downward price swing which should attempt to break through the $10,250 level and possibly attempt to move much lower. The Transportation Index reflects future expectations for shipping of goods and raw materials across the US and, of course, is somewhat related to global economic activity. If the Transportation Index falls in price, then future expectations are for weaker economic activity. If it rises, then investors expect the economy to continue to strengthen. This Double-Top formation in the TRAN could set up to become a very ominous warning sign for traders and investors. Recent news about the contraction of China’s economy and the fact that Q2 earnings are about to hit the US markets and global markets could become a key factor in the future for volatility and price. We believe the markets are already setting up a topping pattern after breaching key psychological levels last week.