The rise in Gold price has continued above $1,340 as well as the divergencies in RSI as can be seen in the 4-hour chart below. The trend remains up. The negative divergencies can continue for more time as Gold price rises and breaks above resistance levels. Next upward target is $1,360. Short-term support is found at $1,335 and the upward sloping trend line provides support at $1,330. The ichimoku cloud remains below Gold price providing support at $1,317.
Our preferred strategy because of the diverging signals of RSI and the continued upward move with higher highs and higher lows is to raise stops in order to stay inside this upward trend as much as possible. The $1,340 zone is very important as this is the 61,8% Fibonacci retracement from $1,433 to $1,180.
Next important resistance on the daily level is $1,370 where the 76,4% Fibonacci retracement is. A daily close below $1,305 will confirm the end of the upward move from $1,180. We remain bullish but we raise our stops to protect long positions.
