Gold price as expected made a bounce higher, however trend remains bearish as price remains below the key resistance of $1,800. Price is challenging the recent highs around $1,800 and the bullish RSI divergence has provided us with a warning to bears.
Green lines - bullish RSI divergence
Gold price if rejected at current levels, it should move sharply lower towards $1,740. Support is found at $1,780-75. The scenario where price makes a new low closer to $1,740 is still in play. As long as price remains below $1,800, the stronger the bears will become. Bulls will need to recapture $1,800-15 in order to regain control of the trend. If bulls manage to reverse to the upside from current levels, the next leg up in Gold will bring price closer or even above the $2,000 level.
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