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10.05.2012 10:29 AM
GOLD Intraday Technical Analysis

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Gold is currently testing the intermediate resistance of its medium term bearish channel at 1,604 and seems to initiate a decline. However, a puncture of these levels will release good potential and will be able to reach the upper limit of this one to 1,655.

Technical indicators provide buy-signals and evolve in oversell zone supporting the assumption of a bullish movement 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.

According to previous events the market will provide a bullish opportunity as soon as gold has broken through its resistance of 1,604 with the 1st objective at 1,615 and then at 1,620. A break through 1,601 will invalidate this scenario.

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