Red line- support trend line
Blue lines- bearish RSI divergence
Gold price soared from $1,900 lows two days ago towards $1,960 today. Price made a new higher high at $1,959. Trend remains bullish. Despite the new higher high in price, the RSI once again provided a new lower high. This bearish divergence is a warning of a weakening up trend. However without a price reversal, this signal remains only a warning. This week's low at $1,900 remains a key support and key trend change level. As we said in previous posts, as long as price is above this level, bulls remain in full control of the trend. The red support trend line provides support at $1,914. So $1,914-$1,900 is our most important support level for the bullish trend that started in late October.
