Gold approaches the upper limit of its medium-term bearish channel at 1,598 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, so we suggest 2 scenarios: the first one is the hypothesis of a decline, then we recommend a sell on the level of 1,598 with the 1st objective at 1,588 and then at 1,585. A break through 1,601 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 1,598 with the 1st objective at 1,608 and then at 1,610. A break through 1,595 will invalidate this scenario.