Gold is currently testing the intermediate resistance of its medium term bearish channel in 1665 indicating a possible decline. However, if these levels are broken down, the significant potential will be revealed opening the way to the upper limit of its channel to 1685.
Technical indicators provide signals for Sell-deals confirming the possible decline that is expected to take place soon. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
According to the previous events, the market indicates a bullish opportunity as soon as the gold will has broken its resistance in 1665 with a 1st objective seen at 1675 and 1680 levels. A breakdown in 1662 will reverse this scenario.
