GOLD Intraday Technical Analysis 2012-05-16

Gold is currently testing the intermediate support of its medium term bearish channel at 1,530 and is expected to rebound. However, a break through this level will trigger a decline to the lower limit – 1,512.
Technical indicators do not provide clear signals but evolving in oversell zone supporting the assumption of a pull back. Bollinger bands are much discarded due to strong recent increase. The situation is expected to stabilize in the nearest future.
According to previous events the market will provide a bullish opportunity at the level of 1,530 with 1,545 and 1,550 seen as first objectives. A break through 1,527 will alter this scenario.