Blue line- support trend line
Gold is trading around $1,776. Short-term trend remains bullish with no sign of a reversal yet. Price continues making higher highs and higher lows. In the near term Gold price is at overbought conditions and a pull back is justified. Short-term support by the blue upward sloping trend line is found at $1,770. A break below $1,770 will give us the first short-term reversal signal. If this happens, Gold price will be vulnerable to a decline towards $1,720 at least. The RSI has started providing some bearish divergence signals in the 4 hour chart, implying that the upward momentum is weakening, at least for the near term.
