Gold is currently testing the upper limit of its medium term bearish channel in 1692 and is likley to decline. However, these levels are passed through, the significant potential will be revealed resulting in the beginning of a bullish trend.
Technical indicators provide signals for Buy-deals, though evolving in the overbuy zone indicated the possibility of a decline. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the beginning of a violent movement.
Proceeding from the previous events, the market indicates a bullish opportunity as soon as the gold will has broken its resistance level 1692 with 1705 and 1710 seen as first targets. A breakdown of the level 1689 will invalidate this scenario.
