Gold has broken the lower limit of its medium term bearish channel at 1 682 leading to acceleration. A pull back at these levels is expected before a resumption of bearish trend. However a break through these levels will mean a false exit and could lead to a violent bullish movement.
Technical indicators provide sell-signals but are approaching the oversell zone suggesting a rebound. 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 indicates a bearish opportunity at the levels of 1 682 with the 1st objective of 1670, then 1665. A break at 1 685 will invalidate this scenario.
