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Gold is currently testing the intermediate resistance of its medium-term bearish channel at 1,684 leading to acceleration. A break of this level will allow it to reach the upper limit of its channel at 1,695.
Technical indicators do not provide clear signals, but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Gold is currently testing the intermediate resistance 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 1,684 with the 1st objective at 1,674 and then at 1,671. A breakthrough of 1,687 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means to buy gold as soon as it is broken through its resistance of 1,684 with the 1st objective at 1,695 and then at 1,698. A breakthrough of 1,681 will invalidate this scenario.
