Blue line- support
Gold remains in a short-term bullish trend making higher highs and higher lows. We have the first bearish RSI divergence in the 4 hour chart, showing us the first sign of slowing down. This is not a reversal signal. Current market conditions justify a pull back. As long as price holds above the blue trend line, bulls remain in full control of the trend. Support is at $1,763. A pull back towards $1,7100-$1,720 is justified. Next upside target is at $1,800. The RSI has already provided the first bearish divergence. We do not usually reversals until we see a second and a third bearish divergence. So I believe it is too early to talk about the end of the upward move that started just above $1,610.
