Gold is currently testing the upper limit of its medium term bearish channel in 1668 and will probably decline. However, a breakdown of these levels will reveal a significant potential and initiate a new trend.
Technical indicators provide buyers signals but as the resistanceremains broken, the assumption of a decline is true. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.
Concerning previous events, the market indicates a bullish opportunity as soon as the gold will has broken its resistance in 1668 with 1678 and 1682 seen as first targets. Incase the level 1665 is passed thorugh, the proposed scenario will be cancelled.
The material has been provided by Instaforex Company - instaforex.com
