13.02.201312:12 Forex Analysis & Reviews: Strategy of the day on the GOLD

Long-term review

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Gold is currently testing the intermediate resistance of its medium term bearish channel at 1,654 suggesting a decline. However, a break of these levels will allow it to reach the upper limit of its channel at 1,679.

Technical indicators do not provide clear signals but 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 a short term.

Gold is currently testing the intermediate resistance of its channel and we recommend 2 scenario: the first one is the hypothesis of a decline where we recommend a sell at the level of 1,654 with the 1st objective at 1,644 and then at 1,640. A break through 1,657 will invalidate this scenario. The second scenario is a break of its resistance where we suggest a “buy stop” which means to buy the gold as soon as it has broken through its resistance of 1,654 with the 1st objective at 1,664 and then at 1,667. A break through 1,651 will invalidate this scenario.

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