Gold price made a new lower low today at $1,809 but the RSI did not make a new low. Price was defended by bulls and we are now trading again above $1,830. The long lower tail in today's candlestick combined with a bullish RSI divergence could be very important for the next few sessions.
Black lines -Fibonacci retracement
Gold price is trading around the 61.8% Fibonacci retracement. Resistance is at the recent consolidation area of $1,827-$1,860. Bulls need to break above this short-term resistance. If resistance is broken, combined with a bullish divergence and a reversal off the 61.8% Fibonacci level, then we have a bullish mix of optimistic signs for the next week. Support is at $1,809 today's low. If this level is broken and the RSI does provide a new lower low then we should expect a move below $1,790.
