FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the intermediate support of its medium-term bearish channel at 1,719 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 1,704.
Technical indicators provide sell signals, but until the support is not broken the assumption of a rebound is most likely. Bollinger bands are stabilized showing a more regular volatility.
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 1,719 with the 1st objective at 1,729 and then at 1,731. A breakthrough of 1,716 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 1,719 with the 1st objective at 1,709 and then at 1,707. A breakthrough of 1,722 will invalidate this scenario.