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21.05.202115:57 Forex Analysis & Reviews: Worrying candlestick pattern in Gold

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Gold's latest 4 hour candlestick is forming a shooting star pattern. The long upper tail implying inability to break above recent highs at $1,889, combined with the bearish RSI divergence, give us a bearish signal for Gold's short-term trend.

Blue lines -bullish channel

Red lines - bearish divergence

Yesterday's Gold price action could have been a blow off top. If the current 4 hour candlestick is a confirmed bearish reversal, then we should expect a deeper pull back in Gold price that could reach the lower channel boundary around $1,825. Short-term support is found at $1,870 and a break below it will be the third sign of weakness, after the bearish divergence and the shooting start pattern. At current levels I prefer to be neutral Gold.

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