Gold price made a new lower low today. Price remains inside the bearish channel making lower lows and lower highs. Trend is clearly bearish. The RSI provided today another bullish divergence as price did not make a new low.
Green lines- Fibonacci retracement
Blue lines- bullish divergence
Gold price is trading below the 61.8% Fibonacci retracement and still inside the bearish channel. The bullish RSI divergence is not a reversal signal but a sign that the downtrend is weakening. It is not a sign that the trend has ended, but traders need to be cautious as we could soon see a reversal signal. Exiting the channel to the upside would be such a reversal confirmation. Until then bears remain in control of the trend.
