Green lines- trading range
Gold is trading around $1,730-40. Gold price is moving up and day inside a trading range between recent lows and $1,748. Medium-term trend remains bearish but for the last couple of sessions Gold price has made no progress. We were expecting Gold price to make a counter trend bounce higher towards $1,770 but seems bulls are not strong enough to even make such a bounce higher. Gold price is making a pause to the downtrend after the heavy selling that occurred last week and pushed price from $1,800 to $1,730. Gold price remains vulnerable to more downside as the RSI is moving further away from the oversold levels. With price moving sideways and the RSI moving higher, this is the worst combination for bulls. Price remains in danger of a dip below $1,700 where we could see a capitulation low and a bigger reversal higher. Until then we continue to consider that bears are in full control of the trend.
