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20.02.202023:51 Forex Analysis & Reviews: Weekly bearish divergence in Gold

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Gold price is making new higher highs. Price remains in a bullish trend but the weekly RSI is giving us some warning signs with a bearish divergence signal. I believe there is no upside potential left at this point in time and it is better to stay neutral and not to chase Gold price in order to open new long positions.

Red lines - bullish channel

Green lines -bearish divergence

Gold price continues to move higher. The RSI does not follow. The RSI makes a lower high. This is a warning for bulls. Support is at last weeks low at $1,561. The stochastic oscillator is also at overbought levels. This is not the time to chase price to go long. This is the time to raise protective stops, to be cautious and take profits.

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