Gold approaches the intermediate resistance of its medium-term bearish channel at 1,603 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1,663.
Technical indicators provide buy signals, but until the resistance is not broken, the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
Gold is currently testing the intermediate resistance of its channel, so we suggest 2 scenarios: the first one is the hypothesis of a decline, then we recommend a sell on the level of 1,603 with the 1st objective at 1,593 and then at 1,590. A break through 1,606 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a buy stop, which means to buy the gold as soon as it has broken through its resistance of 1,603 with the 1st objective at 1,613 and then at 1,615. A break through 1,600 will invalidate this scenario.