Gold price is now trading just above $1,750 having broken out of the trading range it was in for the last 6 days. Gold price has produced a new bearish signal as expected and is moving towards our next target of $1,740.
Gold price is making new lower lows. Trend remains bearish as long as price is below $1,780-$1,800. This is now the most important resistance area. Despite seeing price making new lower lows, the RSI is making a bullish divergence. This is a warning for bears. This is not a reversal signal. Bears need to be cautious. Price could soon make an important low and make a bigger upward reversal. So far there is no such indication. As we said in our last analysis, the most probable outcome was for price to break to the downside. This is exactly what happened. Now we wait to see where this decline stops. A move above $1,780-$1,800 will be a confirmation of a trend change.
