Gold is now testing the upper limit of its medium term bearish channel at 1,629 and seems to initiate a decline. Though a break through these levels will release good potential and initiate a violent bullish trend. Technical indicators give out buy-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. Following previous events the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1,629 with the 1st objective at 1,640 and then at 1,645. A puncture of 1,626 will invalidate this scenario.
Albert Fitoussi is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.
