Gold Bearish Divergence Point to Correction

Weekly Chart

• Class A bearish divergence in weekly MACD and RSI

Daily Charts

• Indicators on daily charts confirm internal weakness and downward price trend

• MACD(50,200,1) slope is negative
• Note the bearish divergence

• momentum indicators are confirming downtrend

• volume indicators are also bearish

• NOTE: The ADX line is moving up and has crossed over the lower line
• this usually indicates a strong trend move is about to start

Summary

It appears that the long awaited Gold correction has begun which coincides with a wave 5 completion. The retracement target is into the wave 4 formation, which aligns quite nicely with the Fibonacci retracement levels - see the weekly chart above. 

Recommended Strategy: wait for a bullish divergence on the weekly chart before going long.