Despite this, we note that, at the end of a parabolic rally, it shows some signs of fatigue.
Therefore we believe that there is some possibility that april 2016 Gold Futures can reverse and begin a retracement towards lower levels.
Commitment of TradersIf we look at the COT Index, the commercials bearish stance could confirm our guess.
Patterns and Volume Spread AnalysisLooking at the daily chart, we can see that the price is testing the latest top, facing a resistance level.
In recent days we see a shooting star (which can be defined as a pseudo upthrust, according to the Volume Spread Analysis), followed by two spinning tops (or something similar). These are signs of a possible reversal.
We cannot say with absolute certainty that gold is reversing, but surely it is testing a rejection level and it shows bearish setups.
Remember: this is not a trade solicitation and, if you decide to trade, you do it at your own responsibility.