Stochastic Indicating Bearish Divergence, Gold May Decline

The price of Gold increased during the Asian trading session on Wednesday (April 9, 2025), breaking above the 50-period Moving Average (MA 50) and the 20-period MA on the 1-hour chart. However, the Stochastic indicator is displaying a bearish divergence (marked by the purple line), which could trigger a short-term decline.

Advertisements

Regulated

FBS

This company is verified and recommended for traders.

FBS: Cyprus 16 years MT4/MT5 Full Licence
Recommended

Regulated

OctaFX

OctaFX: Cyprus 14 years MT4/MT5 Full Licence
Recommended

Regulated

FXCM

This company is verified and recommended for traders.

FXCM: Australia 26 years MT4/MT5 Full Licence
Recommended

Regulated

MIFX MONEX

MIFX MONEX: Indonesia 25 years MT4/MT5 Full Licence
Recommended

Furthermore, the Stochastic on the 15-minute chart is also in the overbought territory, which increases the likelihood of a short-term decrease. As long as Gold remains below the level of US$3,030, it could potentially fall towards the psychological level of US$3,000.

Technical Reference: sell
Potential Take Profit 1: US$3,030
Potential Take Profit 2: US$3,040
Potential Stop Loss 1: US$3,000
Potential Stop Loss 2: US$2,990