FX.co ★ Strategy of the day on GOLD

Gold broke the intermediate resistance of its medium-term bullish channel in 1,588 leading to acceleration. A pullback on this level is expected before the upper limit of its channel at 1,626 is reached.
Technical indicators do not provide clear signals supporting the assumption of a pullback in the short term. Bollinger bands have stabilized showing a more regular volatility.
Gold broke the intermediate resistance of its channel, we suggest 2 scenarios. The first one is the hypothesis of a pullback, we recommend a buy on the level of 1,588 with the 1st objective at 1,598 and then at 1,602. A breakthrough of 1,585 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “sell stop” which means to sell gold as soon as it is broken through its support of 1,588 with the 1st objective at 1,578 and then at 1,575. A breakthrough of 1,591 will invalidate this scenario.