Gold is presently testing the intermediate support of its medium term bearish channel in 1620 indicating a possible rebound. However, a breakdown of these levels would entail a decline its lower limit at the level 1590.
Technical indicators provide buyers signals and as the support level is not broken yet, the assumption of a rebound is true. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Considering previous situation, the market indicates a bullish opportunity at levels of 1620 with a 1st objectives seen at 1632 and 1635 levels. A breakdown in 1617 will cancel this scenario.
The material has been provided by Instaforex Company - instaforex.com
