Early in the American session, gold is trading around 2,709 within the bullish trend channel forming since December 26th reaching resistance zones and showing signs of exhaustion which is likely to cause a technical correction in the next few days.
If gold reaches the resistance levels of 2,720 or 2,734 in the next few hours, it will be seen as a signal to sell as these levels represent a strong barrier which is likely to cause gold to fall below this area.
Besides, if gold falls below 5/8 Murray, there could be a change in the trend. Thus, we could wait for gold to reach the 200 EMA located at 2,657. The instrument could even return to the 2/8 Murray level located at 2,578.
The eagle indicator is showing overbought signals, so we will look for opportunities to sell in the next few days as long as the gold price remains below 6/8 Murray.
The material has been provided by InstaForex Company - www.instaforex.com
