Gold price is trading at $1,749. Price is making lower lows and lower highs. Trend is clearly bearish. Price is also inside a well defined bearish channel and as long as this is the case, bears will remain in control of the trend.
Black lines - bearish channel
Blue lines- bullish divergence
Gold price has so far retraced 61.8% of the entire upward move from August. Short-term trend is bearish. Bulls need to break above $1,765 at least in order to change it. The RSI so far has provided one bullish divergence signal. This is a warning of a weakening down trend. We could see lower lows but bears need to be cautious. The 61.8% Fibonacci retracement level is usually a price level where we see trend reversals. Will this happen again? Price action and indicators justify this.
