Technical analysts recently saw a perfect double bottom chart pattern for the S&P 500. When it occurred in March, it seemed almost too good to be true, but nevertheless, it worked out perfectly as the index bounced off of its prior lows and never looked back.
The opposite of the double bottom (bullish) chart pattern is the double top (bearish). This occurs when the price makes a short-term high, has a slight retreat, and then retests the prior high but fails to break through.
The price of oil recently made a double top, and upon further analysis, this formation has been no stranger for the commodity over the past year or so. Going back to the start of 2006, oil has had four other double tops that have all resulted in a bearish outcome for the commodity.