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Gold approaches the upper limit of its medium-term bullish channel at 1.792 suggesting a decline. However, a break of these levels initiates a more violent bullish channel.
Technical indicators provide sell signals and 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.
Gold approaches the upper limit of its channel, we suggest 2 scenarios: the first one is the hypothesis of a decline where we recommend a sell on the level of 1.792 with the 1st objective at 1.782 and then at 1.780. A breakthrough of 1.795 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means to buy the gold as soon as it is broken through its resistance of 1.792 with the 1st objective at 1.802 and then at 1.805. A breakthrough of 1.789 will invalidate this scenario.
