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Gold approaches the upper limit of its medium term triangle at 1,626 and seems to initiate decline. However, a breakthrough these levels would enable to carry over the basis height of the triangle on the output of this one.
Technical indicators do not provide clear signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term. Moreover, the superior band strengthens the upper limit of the triangle.
According to previous events, the market will provide a bullish opportunity as soon as the gold breaks through its resistance of 1,626 with the 1st objective at 1,636 and then at 1,640. A breakthrough 1,623 will invalidate this scenario.
