Gold is currently testing the intermediate support of its medium-term bearish channel at 1,648 suggesting a rebound. However, a break of these levels will free a large potential and reach the lower limit of its channel at 1,610.
Technical indicators do not provide clear signals but the rate evolves in oversell zone and until the support is not broken the assumption of a rebound is most likely. Bollinger bands are much discarded as a result of a strong increase these days. Stabilization is expected in the short term.
Gold is currently testing the intermediate support of its channel, we suggest 2 scenarios. The first one is the hypothesis of a rebound where we recommend a buy on the level of 1,648 with the 1st objective at 1,658 and then at 1,662. A breakthrough of 1,645 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell gold as soon as it is broken through its support of 1,648 with the 1st objective at 1,638 and then at 1,635. A breakthrough of 1,651 will invalidate this scenario.