Gold closed at $ 1204.90/oz and traded with a fairly positive price movement on trading last week, where the lowest price was still in the weekly pivot area and the highest price was in the first weekly resistance area (R1), seen also experiencing a significant price spike in Friday (8/24). The price is very strong also still maintains price movements above the pivot by closing above the weekly pivot for this week.
But there is one interesting thing here, if the gold price is unable to move up further beyond the first weekly resistance at $ 1214/oz then a hidden divergence will occur between price movements and RSI indicator. We can use Hidden divergence as a sign that the trend has not changed yet or continuation trend. Coupled with the position of the RSI indicator which is nearing the overbought area, there is little room to push the gold price further up. If the gold price does not immediately move up above the weekly resistance for this week and forms a higher high above $ 1217.20/oz then it is very likely that gold will continue go down, and break past the previous swing low at $ 1183/oz.
But there is one interesting thing here, if the gold price is unable to move up further beyond the first weekly resistance at $ 1214/oz then a hidden divergence will occur between price movements and RSI indicator. We can use Hidden divergence as a sign that the trend has not changed yet or continuation trend. Coupled with the position of the RSI indicator which is nearing the overbought area, there is little room to push the gold price further up. If the gold price does not immediately move up above the weekly resistance for this week and forms a higher high above $ 1217.20/oz then it is very likely that gold will continue go down, and break past the previous swing low at $ 1183/oz.
Trade active:
Potentially to set bearish butterfly
