Gold is now testing the upper limit of its medium term bearish channel at 1,629 and seems to initiate a decline. However, a break through these levels will release good potential and initiate a violent bullish trend.
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 increase these days. Stabilization is expected in a short term.
In accord to recent events the market will provide a bullish opportunity as soon as gold has broken through its resistance of 1,629 with the 1st objective at 1,640 and then at 1,645. A break through 1,626 will invalidate this scenario.
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