Bearish divergence on gold
Updated
We have a bullish trend line on the 4 hour gold chart with 5 solid touch points.
The black arrows on the chart and the RSI indicate the bearish divergence. The first one occurred in the overbought range, however my only issue with this is that the current divergence is not all above the overbought range.
However, I still like this because, despite being weak bearish divergence, it is coupled with the fact that there is a trend line and a real possibility of a 6th touch point.
Risk/reward of just under 2:1.
The black arrows on the chart and the RSI indicate the bearish divergence. The first one occurred in the overbought range, however my only issue with this is that the current divergence is not all above the overbought range.
However, I still like this because, despite being weak bearish divergence, it is coupled with the fact that there is a trend line and a real possibility of a 6th touch point.
Risk/reward of just under 2:1.
Trade closed: target reached
Closed this trade at 1247.89 as it meets the trend line that is drawn touching the closes. (Shift the trend line up until it touches all the market closes, and that is where I closed at a profit.)
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