GOLD intraday technical analysis
Gold approaches the upper limit of its medium-term bearish channel at 1,697 suggesting a decline. However, a break of these levels will initiate a violent bullish channel.
Technical indicators provide buy 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.
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 1,697 with the 1st objective at 1,687 and then at 1,684. A breakthrough of 1,700 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy gold as soon as it is broken through its resistance of 1,697 with the 1st objective at 1,707 and then at 1,709. A breakthrough of 1,694 will invalidate this scenario.
The material has been provided by Instaforex Company – instaforex.com