Gold price is currently testing the intermediate resistance of its medium term bearish channel at 1,729 suggesting a decline. Still a break though these levels will allow it to free a large potential and reach the upper limit of its channel to 1,788.
Technical indicators don't give clear signals but are approaching to the oversell zone suggesting a rebound. Bollinger bands are much discarded to a result of the strong decline of these days. Stabilization is expected in the short term.
According to previous events, the market will detect a bullish opportunity as soon as the gold has broken its resistance at 1,729 with the 1st objective of 1,740, then 1,745. A break though 1,726 will invalidate this scenario.
