Gold price so far made a low at $1,760 and is now trading at $1,782. Technically trend remains bearish as price continues making lower lows and lower highs. However the RSI has shown the first reversal warnings with a higher low, despite the lower low in price.
Blue lines- Fibonacci retracements
Gold price is trading at the 61.8% Fibonacci retracement and is bouncing off this support area. We mentioned in previous posts that the 61.8% Fibonacci retracement is a possible reversal level. The RSI is showing bullish divergence signals and this is something bears should not ignore. We do not have a reversal confirmation yet, only a warning for bears. Traders need to be very cautious.
