PGOLD forming an RSI Bearish Divergence. Price forming higher highs but RSI is forming lower highs.
RSI does not confirm the new high and this shows weakening momentum... ADX line is still above 40 but falling showing strength is decreasing
but this does not usually mean that the trend is reversing. I also read that it must be noted that
divergences are misleading in a strong trend. A strong uptrend can show numerous bearish
divergences before a top actually materializes.
In general, divergence is not a signal for a reversal, but rather a warning that trend momentum is changing.
Let's check the candlesticks... We see that there was a good run last week until a shooting star appeared yesterday... Now price formed a high wave candlestick... The last 2 candlesticks are signs of indecision. Might make a U turn or move sideways before it goes up again.
Disclaimer: This is my personal technical analysis on this stock. It is not my intention to give a buy or sell advise. Trade at your own risk.
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