Gold is approaching the lower limit of its medium term bullish channel at 1 699 suggesting a rebound. Still a break of these levels will free a large potential and entail a bearish channel.
Technical indicators provide sell-signals but until the support is not broken, the assumption of a rebound is most likely. 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 bullish opportunity at the levels of 1 699 with the 1st objective of 1 710, then 1 715. A break though 1 696 will change this plan.
