FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the intermediate resistance of its medium term bullish channel at 1,775 and seems to initiate a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1,788.

Technical indicators provide buy 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. Furthermore, the gold evolves on the levels of the superior band supporting the hypothesis of a decline.

Gold is currently testing the intermediate resistance of its channel, we suggest 2 scenarios: the first one is the hypothesis of a decline where we recommend a sell at the level of 1,775 with the 1st objective at 1,765 and then at 1,762. A breakthrough of 1,778 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means buying gold as soon as it is broken through its resistance of 1,775 with the 1st objective at 1,785 and then at 1,788. A breakthrough of 1,772 will invalidate this scenario.