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Gold approaches the upper limit of its medium-term bearish channel at 1,707 suggesting a decline. However, a break of these levels will initiate a violent bullish channel.
Technical indicators do not provide clear signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in the short term.
Gold is currently testing the upper limit of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1,707 with the 1st objective at 1,697 and then at 1,694. A breakthrough of 1,710 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy gold as soon as it is broken through its resistance of 1,707 with the 1st objective at 1,717 and then at 1,720. A breakthrough of 1,704 will invalidate this scenario.
