Gold is currently testing the intermediate resistance of its medium-term bearish channel at 1,716. It seems that a decline was initiated. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1,729.
Technical indicators provide 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 decline 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 1,716 with the 1st objective at 1,706 and then at 1,703. A breakthrough of 1,719 will invalidate this scenario. The second scenario is a break of its resistance where we recommend a “buy stop” which means to buy gold as soon as it is broken through its resistance of 1,716 with the 1st objective at 1,726 and then at 1,729. A breakthrough of 1,713 will invalidate this scenario.