Gold - Bearish Divergence (Daily chart)
Bearish divergence possibly indicates signs of weakness in the market trend and that a reversal may occur from uptrend to downtrend.
It is formed when price forms a higher high and your chosen indicator forms a lower high.
In the daily chart above we can see Gold against the U.S dollar sell off after bearish divergence formed with the MACD and RSI.
Combined with news of a stronger U.S dollar, rise in the Dollar index, break of uptrend in Gold - both fundamentals and technical set up for a move lower.
It is formed when price forms a higher high and your chosen indicator forms a lower high.
In the daily chart above we can see Gold against the U.S dollar sell off after bearish divergence formed with the MACD and RSI.
Combined with news of a stronger U.S dollar, rise in the Dollar index, break of uptrend in Gold - both fundamentals and technical set up for a move lower.