After the crazy run-up we saw earlier this year GOLD is finally consolidating. Is it ready for a drop?
The monthly RSI peaked at 84 points. The last few times that the monthly RSI peaked above 80 points we saw a retraction of 35% to 45% in the period after the RSI peaking.
The $1400-$1500 level is chosen specifically because it’s an area of resistance which has been holding strong since 2006.
................................................................................................................................................................... If you like this analysis, please comment, subscribe and comment. ...................................................................................................................................................................
From what I see, let say that points where RSI peaked above 80, is A=2008, B=2011, and C= 2020.
It shown in the chart that when A happened and followed by B, It created a bearish divergence with RSI, where the price was gotten higher and RSI gotten lower which mean that it was a reversal trend. As for C, however, we can see that the RSI created a new higher high. SO, I expect that in the future gold might price higher accompanied by RSI getting lower. And another reversal trend might happen.
FieryTrading
⋅
@Talismanxx, thanks for you input. I think the overall macro trend will continue after hitting the $1500 area as well.
Raf-Capital
⋅
Lol 😂 you are living in a dream land !! See you after 5 years
Check this: