07.01.201310:05 Forex Analysis & Reviews: GOLD Intraday Technical Analysis

Long-term review

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Gold approaches the intermediate resistance of its medium-term bearish channel at 1,662 and seems to initiate a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1,715.

Technical indicators do not provide clear 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 is currently testing the intermediate resistance of its channel, so we recommend 2 scenarios: the first one is the hypothesis of a decline, then we recommend a sell at the level of 1,662 with the 1st objective at 1,652 and then at 1,650. A break through 1,665 will invalidate this scenario. The second scenario is a break of its resistance, then we recommend a buy stop, which means to buy the gold as soon as it breaks through its resistance of 1,662 with the 1st objective at 1,672 and then at 1,675. A break through 1,659 will invalidate this scenario.

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