Gold (XAU / USD) is trading above the support of 2/8 Murray and above the 21 SMA. There are no significant changes since the market opened this week. Gold is not volatile, and is moving sideways above 1,775
According to the 4-hour chart, we can see that gold is trading within a downtrend channel. Given that it is now above the 21-moving average, the metal is likely to try to break the top of the channel and thus to rise to the zone of 4/8 Murray around 1,812.
On the contrary, if XAU / USD weakens and trades below 1,770, it is likely that the downward pressure will again push it down to the low of 1,765 (1/8) and if it breaks this support towards the psychological level of 1,750.
Technically, Gold could be at risk of falling only if it consolidates below the SMA of 21 in the next few hours. If the pirce trades below 1,777, it means that gold has no support, because both the EMA of 200 and SMA 21 are above the price and act as resistance exerting downward pressure.
Above 1,800 (200 EMA), gold could gain momentum and will be more attractive to investors. Above this level, the road will have no obstacles to climb to 1,812. If this level is surpassed, the final target of 1,843 will be reached.
Our trading plan for the next few hours is to buy gold as it consolidates above 2/8 Murray at 1,781 or if rebound at 1,777 (21 SMA) with targets at 1,800 (200 EMA) and through 1,812. The eagle indicator is showing positive signal, which confirms our bullish strategy.
Support and Resistance Levels for December 07 - 08 2021
Resistance (3) 1,807
Resistance (2) 1,792
Resistance (1) 1,785
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Support (1) 1,773
Support (2) 1,765
Support (3) 1,760
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A trading tip for GOLD on December 07 - 08, 2021
Buy above 1,777 (21 SMA) with take profit at 1,792 (bearish channel) and 1,801 (200 EMA), stop loss below 1,772.
