Gold is currently testing the intermediate support of its medium-term bearish channel at 1,700 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 1,688.
Technical indicators provide buy signals and until the support is not broken the assumption of a rebound is most likely. Bollinger bands are stabilized showing a more regular volatility.
Gold is currently testing the intermediate support of its channel, we suggest 2 scenarios. The first one is the hypothesis of a rebound where we recommend a buy on the level of 1,700 with the 1st objective at 1,710 and then at 1,712. A breakthrough of 1,697 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 1,700 with the 1st objective at 1,690 and then at 1,688. A breakthrough of 1,703 will invalidate this scenario.