Technical Outlook for Gold (GLD)

Gold: Gold has been in an oscillating trend at least for the last two years bouncing between the 590 and 795 points. From a technical perspective, the short term scenario for Gold may be in the downside. The stochastic indicator has just recently crossed down, which is a strong bounce down signal. Fibonacci resistance level of 648.6 was broken as well as the Bollinger band indicator. In this context is especially important to highlight that the Fibonacci level of 649 was acting as main resistance with multiple touches in the past. Another interesting technical theme happening with gold is the upper trading channel that has formed since January this year. The bottom of this channel is being tested as I write and maybe broken in next sessions. If this happened a main support level of 620 may be next. Because Gold has been oscillating for so long, this 620 is a likely rebound level.