Gold - Bearish price RSI divergence at falling trend line hurdle

9 giu 2016

Resistance - $1263, $1270, $1284

Support - $1260, $1253, $1247

• Gold's bearish price RSI divergence on the hourly chart comes at a time when the metal is attempting a bullish break from falling trend line on the daily chart.
  

• In this scenario,a failure to hold above $1260 (rising trend line support on hourly) would add credence to bearish divergence and open doors for a fall back to $1253 levels. A violation there would expose support at $1247.
  

• On the higher side, an hourly closing above $1266.37 would signal bearish divergence invalidation and shift risk in favor of a rise to $1270-$1270 levels.