GOLD - EUR - GOLD- Hitting five years low, will you buy or sell? - 07/20/2015 (GMT)

The precious metal is under tremendous pressure this morning after the massive sell off which triggered last night. The price is trading below its downward trend on a daily time frame. It has also pierced the Bollinger band and this shows that the volatility is skewed towards the extreme end. Piercing of the Bollinger band does have vital importance when this takes place at an important level of support or resistance. In our chart, it has taken place at an important level of support and the price has bounced back up sharply from its this zone which is mentioned below.
The RSI indicator is trading in an extreme territory and this calls for caution.