Gold price very close to providing reversal signal for May 30th, 2023.
May 30, 2023 1:23 pm
Red lines- bearish channel
Blue lines- bullish RSI divergence
Gold price is trading around $1,957. Price is now challenging the upper channel boundary resistance. The recent low at $1,931 was not followed by a new low in the RSI. The RSI provided a second bullish divergence. If price breaks above the channel resistance then we will have a reversal signal. The combination of the bullish divergence with price breaking above $1,960 would be a sign of strength and a reversal. A rejection at $1,960 resistance, could lead to a pull back towards $1,940 or even lower. Our $1,925 target was almost reached, as price only bottomed $6 higher. We are at an important short-term junction, very crucial for the near term trend. Traders need to be cautious.
The material has been provided by InstaForex Company – www.instaforex.com
Red lines- bearish channel
Blue lines- bullish RSI divergence
Gold price is trading around $1,957. Price is now challenging the upper channel boundary resistance. The recent low at $1,931 was not followed by a new low in the RSI. The RSI provided a second bullish divergence. If price breaks above the channel resistance then we will have a reversal signal. The combination of the bullish divergence with price breaking above $1,960 would be a sign of strength and a reversal. A rejection at $1,960 resistance, could lead to a pull back towards $1,940 or even lower. Our $1,925 target was almost reached, as price only bottomed $6 higher. We are at an important short-term junction, very crucial for the near term trend. Traders need to be cautious.
The material has been provided by InstaForex Company – www.instaforex.com
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