Gold Price - Upward Momentum Is Building
London (Dec 23) The precious metal is trading below its downward trend line on a 4 hour time frame. This confirms that the trend is towards the downside. However, it is important to note that the price is challenging this line and a break of this line towards the upside will confirm that the downward trend is no longer in play.
In addition to this, we are also trading in a side way pattern and we need to break out of this consolidation pattern in order to get a clear sign for an upward trend. The price is trading above its 50 day and 100 day moving average shown in yellow and red colour respectively and this is a confirmation that the momentum is building is towards the upside.
The RSI is trading in line with the price action and this confirms the positive divergence.