Blue line- support trend line (broken)
Green lines- Fibonacci retracement
In our previous post we warned Gold bulls that the precious metal was vulnerable to a pull back. Yesterday Gold price was trading around $1,778 and by the end of the session price has broken our key upward sloping support trend line and provided the first sign of weakness and sign of a pull back. Gold price today is trading below $1,760 as price is pulling back as expected. Short-term support is found at $1,746 where we find the 23.6% Fibonacci retracement and next and most important support is at $1,721 and the 38% retracement level. It was justified for Gold price to turn lower. The bearish RSI divergence signals and the almost vertical rise of the recent days, suggested that the bullish momentum was not sustainable.
