Gold has been in a choppy mess. In May, we had some bearish signs, including a break below the consolidation range between 1178 and 1224. However, the failure to test the 1170 handle can be translated into a bullish signal.
The 4H gold chart shows the false break to the downside. In May, the initial bearish bias and momentum has quickly turned around during the 5/13, Wednesday session. The pressure is now on the 1224 resistance.
With the prevailing trend in the 4H chart being bullish before the consolidation, we have even more reason to believe that the false breakdown will translate to a bullish breakout above 1224/1225, which would open up at least the 1240 pivot seen in the daily chart.
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