Gold is presently testing the intermediate resistance of its medium term bearish channel in 1634 and is expected to decline soon. However, a breakdown of these levels will enable to reach the upper limit of its channel in point 1676.
Technical indicators do not provide clear signals but as the resistance remains unbroken, the decline is most likely to take place. Bollinger bands are much discarded due to the strong decline of these days.The situation is expected to stabilize in the nearest future. Considering the previous situation, the market indicates a bullish opportunity as soon as the gold will has broken its resistance in 1634 with 1st objectives seen at 1645 and 1650 levels. A breakdown in 1631 will reverse the prospect scenario.
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