Gold broke though the intermediate resistance of its medium term bearish channel at 1,645 which led to acceleration. A pull back at this level is expected before release of a large potential and reaching the upper limit of its channel at 1,672.
Technical indicators provide buy-signals but are approaching the overbuy zone supporting the assumptions of a pull back in the short term. 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 1,645 with the 1st objective of 1,660 and then of 1,665. A break though 1,642 will invalidate this scenario.
