Red line- bearish divergence
Blue lines - bullish channel
Gold price is trading around $1,815. Short-term trend remains bullish as price continues making higher highs and higher lows. The RSI has provided us so far with a bearish divergence warning but price has not confirmed any reversal yet. Gold price has formed a bullish channel and so far price remains inside its boundaries. Channel support is at $1,783. As long as price is above this level, bulls are safe. However the RSI suggests that the up trend is weakening and we could soon see a reversal. But the RSI bearish divergence is only a warning. Not a reversal signal. We need to see price break below $1,783 in order to get a reversal signal.
