Last week when Gold provided the bearish signal by breaking below $1,850, we said that we expected this week to start with prices under pressure. Gold price sold off and reached all our downside targets according to the Fibonacci retracements. Now price is challenging important support levels.
Black lines- Fibonacci retracements
Red line - expected path
Gold is challenging yesterday's lows at $1,780. Trend remains bearish. Gold has resistance at $1,795. The RSI has started providing some bullish divergence signs, that is why I expect Gold price to make a new lower low towards $1,770 and then reverse to the upside. If Gold starts bouncing from $1,770 and starts making higher highs and higher lows, this would be a reversal signal and could be the start of a new upward move.
