FX.co ★ GOLD Intraday Technical Analysis

Gold approaches the upper limit of its medium-term bearish channel at 1,676 suggesting a decline. However, a break of these levels will initiate a violent bullish channel.

Technical indicators do not provide clear 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 is currently testing the upper limit of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline, then we recommend a sell on the level of 1,676 with the 1st objective at 1,665 and then at 1,662. A break through 1,679 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 1,676 with the 1st objective at 1,686 and then at 1,689. A break through 1,673 will invalidate this scenario.