Gold is currently testing the intermediate resistance of its medium-term bullish channel at 1.798 suggesting a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1.808.
Technical indicators provide sell signals and 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 increase in recent days. Stabilization is expected in the short term.
Gold is currently testing the intermediate resistance 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 1.798 with the 1st objective at 1.788 and then at 1.785. A breakthrough of 1.801 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means to buy gold as soon as it is broken through its resistance of 1.798 with the 1st objective at 1.808 and then at 1.810. A breakthrough of 1.795 will invalidate this scenario.