Gold is currently testing the upper limit of its medium term bearish channel in the point 1708 and seems to initiate a decline. However, if these levels are passed through, the significant potential will be revealed, initiating a bullish trend.
Technical indicators provide signals for SELL-deals but their close location near the oversell zone shows that the rebound is likely to take place. Bollinger bands have greatly tightened in recent daysindicating a volatility decline and the imminence of a violent movement.
Considering the previous events, the market indicates a bullish opportunity as soon as the gold will has broken its resistance level 1708 with the 1st objectives 1720 and 1725. If the point 1705is passed through, the prospect scenario will be reversed.
