Technical analysis of Gold for June 27

Gold price has pulled back towards $1,400 as expected and noted in our previous posts. The risk reward ratio did not favor bulls and as the RSI was giving bearish divergence signs, we said that we prefer to take profits and stay neutral when price was above $1,430.

Blue lines - bearish divergence
Green line - support trend line

Gold price has pulled back from $1,439 towards $1,400. The bearish divergence warnings by the RSI have been fulfilled. Price has made the minimum required pull back. Price could continue lower towards $1,380-90 area before resuming its up trend. Short-term support is found at $1,410 and resistance at $1.425. Medium-term trend remains bullish. Gold bears will need to break below $1,270-$1,300 area in order to cancel the importance of this bullish breakout.

Analysis are provided by InstaForex