30.11.201210:41 Forex Analysis & Reviews: GOLD Intraday Technical Analysis

Gold approaches the intermediate resistance of its medium-term bullish channel at 1,737. It seems that a decline was initiated. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1,753.
Technical indicators do not provide clear signals and until the resistance is not broken the assumption of a decline is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in the short term.
Gold is currently testing 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 1,737 with the 1st objective at 1,727 and then at 1,724. A breakthrough of 1,740 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy gold as soon as it is broken through its resistance of 1,737 with the 1st objective at 1,747 and then at 1,750. A breakthrough of 1,734 will invalidate this scenario.