Gold Technical Analysis: Eyes corrective bounce on bullish 4H RSI divergence
|Gold snapped its five-day winning streak with a 0.19 percent gain on Thursday, confirming a bullish divergence of the relative strength index on the 4-hour and hourly charts.
4-hour chart
- As seen above, the RSI carved out a higher low yesterday as opposed to a new lower low on price and has found acceptance above 30.00.
- The bullish divergence indicates scope for a corrective bounce to $1,280-$1,285 resistance zone in the first half of the next week.
- The divergence, however, would fail if the price finds acceptance under the previous day’s low of $1,270.
- As of writing, the yellow metal is changing hands at $1,275 per Oz.
Trend: Corrective bounce
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.