On Friday the gold broke the upper limit of its medium term bearish channel leading to acceleration. A pull back on these levels is expected before a resumption of bullish trend. However, a break of these levels will invalidate this scenario and initiate a violent bearish movement.
Technical indicators do not provide clears signals but until the support is not broken, the hypothesis of a pull back is most likely. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in a short term. We can refer the increase which was made on August 10 at the exit of the channel giving us a target of 1,638.
According to previous events, the market will provide a bullish opportunity at the level of 1,618 with the 1st objective at 1,630 and then at 1,638. A breakthrough 1,615 will alter this scenario.
