- June 21, 2023
- Posted By: capadmin
- Category: Market News
Bullish hidden divergence on RSI
The gold market has been experiencing a period of consolidation and uncertainty, with prices showing a lack of clear direction. However, recent technical analysis reveals some interesting patterns and indicators that could provide valuable insights. Traders and investors have observed the formation of a descending triangle pattern, indicating a potential continuation of the current downward trend. Additionally, the Relative Strength Index (RSI) has displayed a bullish hidden divergence, suggesting a shift in momentum.
![](https://capitalcore.com/wp-content/uploads/2023/06/21-6-2023-Capi-1024x524.gif)
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
These patterns and indicators highlight the importance of closely monitoring price movements and considering multiple factors to make informed decisions in the gold market. The analysis of the gold price reveals the formation of a descending triangle pattern and the presence of a bullish hidden divergence on the RSI. The descending triangle, characterized by a flat support line and lower highs, suggests a continuation of the current downward trend. This pattern signifies a decrease in buyer interest at higher prices. On the other hand, the bullish hidden divergence on the RSI indicates a shift in momentum favoring the bulls, despite the price forming lower lows. This divergence suggests underlying strength in the market. Traders and investors should closely monitor the price action for a potential breakout above the descending trendline resistance, which could signal a reversal or bullish continuation. Alternatively, a breakdown below the support level would confirm the bearish pattern and potentially result in further downside momentum. As with any analysis, it is important to consider other technical indicators and fundamental factors to make well-informed trading decisions and effectively manage risk.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.