Blue lines- bullish channel
Red line- bearish RSI divergence
Gold price pulled back towards channel support yesterday. Price made a low around $1,784 and respected the lower channel boundary. Price is now bouncing off the channel boundary and as long as price is above $1,784, we can see a new higher high or at least a bounce towards $1,817. The RSI suggests that a reversal might be imminent, but we need also to see a confirmation by breaking below support of $1,780-84. Until then bulls remain in control and we could see higher highs. Our pull back target remains at $1,730.
