Blue lines- bullish channel
Red line- bearish RSI divergence
Gold price is trading around $1,805. Yesterday Gold price made a new higher high at $1,832 but bulls were not strong enough to hold their gains. Price sharply reversed and pulled back towards $1,800. The new higher high in price was not followed by a higher high by the RSI. On the contrary the RSI provided us with another bearish divergence. Gold price continues to trade inside the blue bullish channel and continues to respect the support at $1,792. The RSI continues to diverge increasing the chances of a major reversal to the downside. Our primary pull back target remains at $1,730.
