Gold: bulls need a decisive pop above $1494

London (Nov 19)  Following the downside break of $1458 key October low, gold has engaged in a mild unwinding drift back higher. We continue to see this move will be the source of the next chance to sell. There is resistance of overhead supply $1474/$1480 which is now being tested. Another failure around here could be the trigger signal. The RSI failing around 45/50 would be a negative signal now and already the Stochastics are looking tired in a rebound. The hourly chart shows a recovery has lost some of its impetus now and more neutral set up is beginning to develop across momentum indicators. Initial support of yesterday’s low at $1456 now protects $1445. The bulls need a decisive pop above $1494 to really suggest a sustaining recovery.

FXstreet

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