Search ForexCrunch

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