Gold price broke below the lower boundary of the ascending triangle we talked about in previous post. However price did not move much lower, instead it found support at $1,870 and is now back above $1,880 trying to break to new highs.
Blue lines - bullish channel
Red lines- ascending triangle
Gold price is near its highs. Price is vulnerable to a deeper pull back because as the RSI suggests, the upside momentum is weakening as the RSI is making lower highs with respect to the higher highs in Gold's price. This is not a reversal signal but an important warning that should not be ignored. Gold price at current levels is not a great opportunity for bulls as there are increased chances of a deeper pull back towards the lower channel boundary. Bulls need to be very cautious.
