Gold price is trading at $1,855. Short-term trend has changed to bearish after the top at $1,916. Gold traders were warned on time that price was about to make a pull back towards $1,870-50 area. Now that the bullish channel is broken, we have confirmation that the correction has started.
Red rectangle- resistance
Blue lines -Fibonacci retracement
Gold price is making lower lows and lower highs. Short-term trend is bearish. I expect to see a move towards the 38% Fibonacci retracement at $1,825. Gold price is not showing any bottoming signs or reversal signals yet. I believe there is more downside to be seen specially if price breaks below $1,844. The RSI is showing some divergence signals but a new lower low in price will clarify the situation. Another bullish RSI divergence will make me change from bearish to neutral in Gold.
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