GOLD - 8H Bullish Divergence GoldOANDA:XAUUSDVIAQUANTI wanted to outline some of the early signs that a local low may be forming for Gold. The first thing to note is yesterday's sweep below $4,000 with a low of $3,959. This is the first liquidity event that needed to occur for a potential local low to be established. Sweeping the liquidity below a major psychological level before reversing is a classic precursor to a bottom forming. On the 8H chart a bullish divergence is beginning to form. Price has created a lower low while the RSI simultaneously printed a higher low from oversold conditions. This is a very bullish signal and amplifies the potential of a local low on the daily timeframe as well, where both price and RSI structure are telling a similar story: In addition to that the CM indicator is signaling a potential low is being established, marked by the black circles and green bars on the chart. Finally, Silver has now entered the pivot low range I have been outlining for some time. Since Gold and Silver tend to trade very similarly, Silver reaching its target zone is another signal that Gold could be attempting to form a low in this region as well. For additional context on the Silver setup view my most recent post here: