Gold is currently testing the intermediate support of its medium-term bearish channel at 1,715 suggesting a rebound. However, a break of these levels will reach the lower limit of its channel at 1,695.
Technical indicators provide sell signals but the rate approaches oversell zone. Until the support is not broken the assumption of a rebound is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
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 1,715 with the 1st objective at 1,725 and then at 1,728. A breakthrough of 1,712 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell gold as soon as it is broken through its support of 1,715 with the 1st objective at 1,705 and then at 1,695. A breakthrough of 1,718 will invalidate this scenario.