Gold approaches the intermediate resistance of its medium-term bearish channel at 1,771 It seems that it initiated a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1,781.
Technical indicators provide buy signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
Gold approaches 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 1,771 with the 1st objective at 1,760 and then at 1,758. A breakthrough of 1,774 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the gold as soon as it is broken through its resistance of 1,771 with the 1st objective at 1,781 and then at 1,783. A breakthrough of 1,768 will invalidate this scenario.