FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the lower limit of its medium-term bearish channel at 1,737 suggesting a rebound. However, a break of these levels will free a large potential and initiate a more violent bearish channel.
Technical indicators provide buy signals and until the support is not broken the assumption of a rebound is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term.
Gold is currently testing the lower limit of its channel, we recommend 2 scenarios: the first one is the hypothesis of a rebound where we suggest a buy on the level of 1,737 with the 1st objective at 1,747 and then at 1,750. A breakthrough of 1,734 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell the gold as soon as it is broken through its support of 1,737 with the 1st objective at 1,727 and then at 1,725. A breakthrough of 1,740 will invalidate this scenario.