Bearish formations in chronological order
- Bearish price-RSI divergence
- Falling trend in RSI
- Rising wedge bearish breakout
Unless the RSI does not see a break from falling trend line, rationale for bearish view on Gold remains intact with prices likely to descend to $1227. If the bulls fail to defend the same, the next key level under focus is $1200. Still, overall outlook would stay bullish till $1190 level remains intact as a support.
Conversely, should the prices move back inside the wedge and witness a bullish break, a continuation of the uptrend is likely. Bulls then would aim for $1300-1310 levels.