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Gold is at the moment checking the upper boundary of its medium term bearish channel at 1 589 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
Technical indicators do not provide clear signals but until the resistance is not broken the assumption of a decline 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 will provide a bullish opportunity as soon as the gold has broken through its resistance of 1 589 with the 1st objective at 1 600 and then at 1 610. A break through 1 586 will invalidate this scenario.
