Red line -bearish RSI divergence
blue lines- wedge pattern
Gold price is trading around $1,805 after making new short-term higher highs yesterday at $1,823. Short-term trend remains bullish. However price has formed an upward sloping wedge pattern and combined with the fact that the RSI is diverging, the chances for a bearish reversal have increased. Price made new higher high yesterday but got rejected at the upper wedge pattern boundary. The RSI is making lower highs providing a warning to bulls. Support is found at $1,785. As long as price is above this level, bulls remain safe.
