FX.co ★ GOLD Intraday Technical Analysis

After the bullish acceleration of Thursday, gold has stabilized and is currently testing the upper limit of its channel at 1,624 supporting the hypothesis of a decline. However, a break of these levels will release good potential and initiate a violent bullish trend.
Technical indicators do not 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 at the level of 1,624 with the 1st objective at 1,614 and then at 1,610. A breakthrough 1,627 will invalidate this scenario. The second scenario is the hypothesis of a break of its resistance then we advise a “buy stop”. We recommend to buy gold as soon as it is broken through its resistance of 1,624 with the 1st objective at 1,635 and then at 1,640. A breakthrough 1,621 will invalidate this scenario.