Gold price got rejected at $1,545-50 and has canceled the bullish cup with handle pattern. Gold price could see price move $100 lower as there are Daily bearish divergence warning signs that should not be ignored.
Green line - bearish divergence
Gold price is trading inside the bullish channel. Trend is bullish. However the RSI bearish divergence suggests that bulls need to be very cautious. Support is at $1,492 and resistance at $1,550. Important for the short-term trend is also the $1,539 level. As long as we trade below this level short-term trend is bearish with potential for a move lower towards the 38% Fibonacci retracement and the $1,450 area. The last stand for short-term bulls is at $1,492. Failure to stay above it will be a bearish sign. $1,510 is also short-term support and breaking it will be a sign of strength from the side of bears. Support is also found at the lower channel boundary at $1,472.
