Gold price has pulled back as expected towards $1,750-60 area and is now moving back towards the recent highs at $1,780. Trend remains bullish as price is still inside the upward sloping channel and so far every time price challenges the lower channel boundary, bulls step in to push price back up.
Red lines – bullish channel
Price continues to make higher highs and higher lows. The recent low at $1,757 did not break below $1,746 low made on June 26th. Price is holding inside the channel and has the potential to make a new higher high. The bearish divergence by the RSI warns bulls not to be overly optimistic. Yes trend remains bullish but bulls should also protect their gains by raising their stops. Any move below $1,758 would be considered a sign of weakness and could lead to a deeper correction.
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