22.10.201212:22 Forex Analysis & Reviews: GOLD Intraday Technical Analysis

Long-term review

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Gold is currently testing the intermediate resistance of its medium-term bearish channel at 1,729. It seems likely that it initiates a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1,740.
Technical indicators provide buy 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 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 1,729 with the 1st objective at 1,718 and then at 1,715. A breakthrough of 1,732 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 1,729 with the 1st objective at 1,740 and then at 1,744. A breakthrough of 1,737 will invalidate this scenario.

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