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Gold broke the intermediate support of its medium-term bearish channel in 1,659 leading to acceleration. A pullback on these levels is expected before the lower limit of its channel at 1,618 is reached.
Technical indicators provide sell signals supporting the assumption of acceleration in the short term. Bollinger bands have stabilized showing a more regular volatility.
Gold broke the intermediate support of its channel, we suggest 2 scenarios. The first one is the hypothesis of a pull back where we recommend a sell on the level of 1,659 with the 1st objective at 1,648 and then at 1,645. A breakthrough of 1,662 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 1,659 with the 1st objective at 1,669 and then at 1,672. A breakthrough of 1,656 will invalidate this scenario.
