GOLD Intraday Technical Analysis 2012-08-14

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Gold is actually testing the upper limit of its medium term triangle at 1,625 suggesting a decline. However, a break of these levels would free a large potential and initiate a violent bullish trend. In case of failure we will be able to delay the width of the base of the triangle at the breaking point to define the theoretical objective.
Technical indicators do not provide clear signals, but until the resistance is not broken, the hypothesis of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility. Moreover, the superior band strengthens the upper limit of its channel suggesting a more violent movement in case of break.
We recommend to buy the gold as soon as it is broken through its resistance of 1,625 with the 1st objective at 1,636 and then at 1,640. A breakthrough 1,622 will invalidate this scenario.
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