Gold is currently testing the intermediate support of its medium term bearish channel at 1 572 suggesting a rebound. However, a break through this level will trigger a decline to the lower limit – 1 535.
Technical indicators provide sell-signals but untill the support is not broken the assumation of a rebound is most likely. Bollinger bands have greatly tightened in recent days are showing a decline in volatility and the imminence of a violent movement.
According to previous events the market will provide a bullish opportunity at the level of 1 572 with the 1st objective at 1 585 and then at 1 590. A break through 1 569 will alter this scenario.
