FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the intermediate support of its medium-term bearish channel at 1,765 suggesting a rebound. However, a break of these levels will free a large potential and enable the lower limit of its channel at 1,740.

Technical indicators provide sell signals and until the support is not broken, the assumption of a rebound 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 intermediate support of its channel and we suggest 2 scenarios: the first one is the hypothesis of a rebound where we recommend a buy at the level of 1,765 with the 1st objective at 1,775 and then at 1,778. A breakthrough of 1,762 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means selling the gold as soon as it is broken through its support of 1,765 with the 1st objective at 1,755 and then at 1,752. A breakthrough of 1,768 will invalidate this scenario.