FX.co ★ GOLD Intraday Technical Analysis

After the bullish acceleration of Thursday, gold has stabilized approaching the upper limit of its channel at 1,625 supporting the hypothesis of a decline. However, a break of these levels will release good potential and initiate a violent bullish trend.
Technical indicators provide clear 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 increase these days. Stabilization is expected in a short term.
Gold tests the upper limit of its channel that is why we recommend 2 scenarios: the first one is the hypothesis of a decline where we suggest a sell on the level of 1,625 with the 1st objective at 1,615 and then at 1,610. A breakthrough 1,628 will invalidate this scenario. The second scenario is the hypothesis of a break of its resistance and we recommend a “buy stop”. We advise to buy the gold as soon as it has broken through its resistance of 1,625 with the 1st objective at 1,635 and then at 1,640. A breakthrough 1,622 will invalidate this scenario.