The topping bearish reversal candle we pointed out on Tuesday is now playing out as price has reached our $1,620 target area. Gold short-term trend is bearish and we could see a move lower still. I expect to end the week at the lowest level.
Gold price is challenging the 4 hour cloud support at $1,620. Short-term trend is bearish as price is below both the tenkan- and kijun-sen indicators and the tenkan-sen (red line indicator) has crossed below the kijun-sen (green line indicator) providing us with a weak sell signal.
The RSI is turning from overbought levels and a bearish divergence lower. This is a warning sign for bulls. This pull back could unfold into something bigger and even a move towards $1,560. Short-term trend is turning bearish and it is best advised to be patient and not try to catch a falling knife.
