Gold price remains in a bullish trend. Price made new 2020 highs as expected since price continues to make higher highs and higher lows. Support remains intact and price has now reached the upper channel boundary and resistance area. It is time to be cautious.
green rectangle - support zone
Gold price is expected to make a pull back. The RSI is at overbought levels. Price has reached channel resistance. At $1,800 we noted we prefer to be bullish. Now I prefer to take partial profits and or turn neutral. A pull back towards $1,830-40 is justified. Price remains inside the bullish channel while there is no bearish divergence.
Despite the new 2020 high in Gold, the weekly chart provides us with a bearish RSI divergence. The new high is not confirmed by the RSI. This supports my view that we should be neutral or at least take partial profits if long. A pull back or a consolidation period is expected over the coming weeks.
