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07.06.2012 10:22 AM
GOLD Intraday Technical Analysis

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At the moment the gold is testing the upper limit of its medium term bearish channel at 1,635 and is about to decline. However, a breakdown of these levels will reveal significant potential and initiate a violent bullish trend.

Technical indicators provide buyers signals but as long as the resistance is unbroken, the assumption of a decline is relevant. Bollinger bands are much discarded due to the strong recent increase. The situation is expected to stabilize soon.  

According to previous events the market will provide a bullish opportunity as soon as the gold has broken through its resistance of 1,635 with the 1st targets seen at 1,645 and at 1,650. If the level 1,632 is passed through, the proposed scenario will be cancelled.

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