Gold is presently testing the upper limit of its medium term bearish channel in 1662 and is expected to decline. However, a breakdown of these levels will reveal significant potential resulting in a bullish trend.
Technical indicators do not provide clear signals but as long as the resistance level is not broken, the decline is most likely to take place. Bollinger bands are much discarded due to the strong increase that took place these days. The situation is expected to stabilize soon.
According to previous events, the market indicates a bullish opportunity as soon as the gold will has broken its resistance in 1662 with 1st targets seen at 1672 and 1675 levels. A breakdown in 1659 will cancel this scenario.
The material has been provided by Instaforex Company - instaforex.com
