With Gold sitting at resistance, the RSI diverging with price, and managed finances extremely bullish, there may be a withdrawal 

. As Russia was erecting colors along the Ukraine border, Gold (XAU/ USD) was nearing the apex of a long- term symmetrical triangle. Eventually, on February 11th, as the “ flight to safety” trade began in humorless, Gold broke out above the top, over leaning trendline of the triangle. As we wrote about last week, price moved higher towards a large resistance area between 1910 and 1923. The resistance in this area is made up of the following; 

 

 The127.2 Fibonacci extension from the highs of November 16th, 2021 to the lows of December 15th, 2021 

. Vertical resistance from the highs of June 1st, 2021 

. The61.8 Fibonacci retracement from the each- time highs on August 7th, 2020 to the lows of March 8th, 2021. 

 Not only was the move to this area rained by the fear of an irruption, but it was also due to rising affectation and sentiment. In particular, the most recent Hut report which showed that managed finances most bullish on gold in 3 months. Moment, the price of Gold traded as high as1914.22 and was rejected. Does this mean that the Gold prices will move lower? 

 Notice on the 240- nanosecond timeframe that the RSI is diverging withprice.However, first support is at moment’s lows near 1891, If price does move lower.48 and also vertical support near1877.16. The top, over leaning trendline of the long- term trendline ( red) is the coming support position near 1850. Still, if price is suitable trade above 1923, the top trendline of the channel is the first position of resistance at 1934. Above there's a convergence of resistance at the161.8 Fibonacci extension from the November 16th, 2021 highs to the December 15th, 2021 lows and vertical resistance from the January 6th, 2021 highs between1953.66 and1959.34. The cerebral round number resistance is just over there at 2000. 

 

 Russia has moved into Donetsk and Luhansk and some believe Putin is set to move further into Ukraine. Will that draw further wrath from the West which will lead to war? That has yet to be determined. Still, right now, with Gold sitting at a convergence of resistance, the RSI diverging with price, and managed finances extremely bullish the unheroic essence, there may be a withdrawal before it resumes advanced.