Is Gold Overdone?

After an impressive rally which saw gold break through the $2,900/oz level for the first time, the market appears poised to blow off some steam.

Key Points:
- High on the daily RSI was set at the end of January and has been flashing divergence since then.
- The RSI has been in a consolidation channel for the last few weeks but broke through to move lower this morning. The current RSI is sitting just below 50.
- This morning, gold broke through the BB midpoint AND the lower trend channel.
- Really bearish closing candle on the daily yesterday.