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Gold Tests Highs after False Breakdown

XAU/USD (gold) has been trading sideways since last week. The market has stalled a bullish trend at a falling trendline seen in the daily chart. 


(gold daily chart)

As the oscillators on the daily chart turn from overbought, the market could be ready to push higher again.

There was a break of a double to seen in the 4H chart, but the false break is now followed by a rally that is challenging the highs from the past week.

The 4H RSI is showing that bullish momentum is intact as it held above 40.


(gold 4H chart)

We might some bearish attempt in the near-term in the 1355-1364 resistance area.

However, be aware that the trend has remained bullish, and a break below at least 1320, and preferably also the rising channel support, might be needed to pull the market into a bearish correction to the 2014 rally.The short from resistance idea here should be limited to the very short-term, until further evidence of topping.