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Gold divergence could point towards bullish break
Gold is turning lower following a sharp rally yesterday, with the price passing the 76.4% retracement. We would need to see a break up through $1283 to negate the continued creation of lower highs and lower lows.
That being said, the stochastic indicator is providing a bullish divergence, with higher highs being indicated despite the lower lows currently in place on the price. Given that this comes after the market returned to the wider 76.4% retracement ($1271), there is a good chance we could start to see this market move higher from here. A rally above $1283 would be the safest way of saying such a move is happening.
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