GOLD Intraday Technical Analysis

Gold is approching to the intermediate resistance of its medium term bullish channel at 1,591 and seems to initiate a decline. However, a break through these levels will release good potential and reach the upper limit of this one to 1,643.

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.

According to previous events the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1,591 with the 1st objective at 1,605 and then at 1,610. A break through 1,588 will invalidate this scenario.

The material has been provided by Instaforex Company – instaforex.com
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