FX.co ★ GOLD Intraday Technical Analysis

Gold bounded off to the lower limit of its medium term bullish channel at 1,591 and is testing now the intermediate resistance of this one at 1,608 suggesting a decline. However a break of these levels would free a large potential and reach the upper limit of its channel at 1,633.
Technical indicators provide sell 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.
The spot rate tests the intermediate resistance of its channel then we recommend 2 scenario: The first one is the hypothesis of a decline then we recommend a sell on the level of 1,608 with the 1st objective at 1,598 and then at 1,595. A break through 1,611 will invalidate this scenario. The second scenario is the hypothesis of a break of its resistance then we recommend a “buy stop”. We suggest to buy the spot rate as soon as it has broken through its resistance of 1,608 with the 1st objective at 1,618 and then at 1,625. A breakthrough 1,605 will invalidate this scenario.