Gold Technical Analysis: Eyes corrective bounce on bullish 4H RSI divergence

Omkar Godbole FXStreet Contributor

Gold snapped its five-day winning streak with a 0.19 percent gain on Thursday, confirming a bullish divergence of the relative strength index on the 4-hour and hourly charts.

4-hour chart

As seen above, the RSI carved out a higher low yesterday as opposed to a new lower low on price and has found acceptance above 30.00.
The bullish divergence indicates scope for a corrective bounce to $1,280-$1,285 resistance zone in the first half of the next week.
The divergence, however, would fail if the price finds acceptance under the previous day’s low of $1,270.
As of writing, the yellow metal is changing hands at $1,275 per Oz.

Trend: Corrective bounce

XAU/USD

Overview
Today last price	1274.43
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1274.43

Trends
Daily SMA20	1294.71
Daily SMA50	1303.99
Daily SMA100	1290.01
Daily SMA200	1249.22

Levels
Previous Daily High	1277.72
Previous Daily Low	1271.35
Previous Weekly High	1310.7
Previous Weekly Low	1288.7
Previous Monthly High	1327.8
Previous Monthly Low	1280.1
Daily Fibonacci 38.2%	1275.29
Daily Fibonacci 61.8%	1273.79
Daily Pivot Point S1	1271.28
Daily Pivot Point S2	1268.13
Daily Pivot Point S3	1264.9
Daily Pivot Point R1	1277.65
Daily Pivot Point R2	1280.88
Daily Pivot Point R3	1284.03

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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