Gold broke out of a rising wedge pattern last week to pare back the largest yearly net long speculative position by large traders (according to the CFTC). The subsequent relapse has stalled at a familiar level, namely the 9-period RSI's 34 level. This oscillator base has supported price-action three out of the last four troughs over the last 8 months. 4-hour bullish MACD divergence has triggered a corrective bounce that looks to retest the 50-day MA (near Monday's high). A failure to reclaim the 50-day MA suggests a retest of the 1185 pivot, but again would represent a solid entry point for long-term bulls.
