FX.co ★ GOLD Intraday Technical Analysis

Gold is currently testing the intermediate resistance of its medium-term bearish channel at 1,743. It seems it initiates a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1,761.
Technical indicators do not provide clear signal 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 the short term.
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 on the level of 1,743 with the 1st objective at 1,733 and then at 1,731. A breakthrough of 1,746 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the gold as soon as it is broken through its resistance of 1,743 with the 1st objective at 1,755 and then at 1,761. A breakthrough of 1,740 will invalidate this scenario.