Gold is currently testing the intermediate support of its medium term bullish channel at 1,688 suggesting a rebound. However, a break through these levels will release large potential and entail a decline to the lower limit of this one to 1,510.
Technical indicators provide buy-signals suggesting a rebound in the short term. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market will indicate a bullish opportunity at the levels of 1,688 with the 1st objective of 1,710, then of 1,720. A break through 1,685 will invalidate this scenario.
