Gold price is trading around $1,900. Price remains in a bullish trend as price continues making higher highs and higher lows. Price is inside an upward sloping channel since the end of January. The RSI has started providing us with bearish divergence signals.
Red lines - bearish divergence
Gold's bullish trend could soon be over. The bearish divergence implies that the bullish momentum is weakening. Failure to stay above $1,890 will be the first reversal signal. The bearish divergence is not a reversal signal, but just a warning. The bearish divergence combined with an exit out of the bullish channel it would imply a change in trend. Bulls need to be very cautious and protect their gains.
