GOLD Intraday Technical Analysis
Gold approaches the intermediate resistance of its medium term bearish channel at 1,663 and seems to initiate a decline. However, a break of these levels will free a large potential to reach the upper limit of its channel at 1,684.
Technical indicators provide buy signals but, until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
Gold approaches the intermediate resistance of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline, then we recommend to sell on the level of 1,663 with the 1st objective at 1,653 and then at 1,650. A break through 1,666 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a “buy stop”, which means to buy at the spot rate as soon as it breaks through its resistance of 1,663 with the 1st objective at 1,673 and then at 1,675. A break through 1,660 will invalidate this scenario.
The material has been provided by Instaforex Company – instaforex.com