Gold price got rejected above $1,535 yesterday and bulls were unable to hold prices above short-term support and previous resistance at $1,525. The RSI not breaking out was the warning we gave yesterday.
Black line -RSI resistance trend line
Gold price is breaking out and below the bullish channel. Price however remains above key short-term support at $1,500-$1,485 but unless we see Gold price above $1,525 soon, the chances for a new low towards $1,450-$1,400 will increase. The RSI as we warned yesterday can not break above the black downward sloping trend line resistance. Despite bulls recapturing $1,525, the inability for the RSI to break above its resistance was a worrying sign and we got confirmed. Price reversed strongly from $1,535 to $1,500. Keep a close eye on $1,500 as failure to hold above it will increase the chances of breaking $1,484 and moving lower towards $1,450.
