Gold at a turning point

Weekly technical picture is really interesting! For the last 3 weeks gold has been attacking severely a key resistance zone made of the confluence of multiple technical indicators: upper bound of a mid-term down trending channel and the 200 weekly EMA.

The weekly candlestick is a doji, it's a sign of indecision and can often be interpreted as a reversal signal especially after a strong rally as the one we have seen recently.

The stochastic oscillator is also deeply overbought meaning that the upside potential is now limited.