Early in the American session, gold is trading around 1,809, showing some exhaustion after starting a bullish cycle during the European session. According to the 4-hour chart, we can see that since December 22, gold has been giving a positive signal and it is likely that it could reach the area of 1,824 and could even reach weekly resistance around 1,830/35.
In the event that gold falls towards the support zone of the SMA 21 located at 1,804, there will be a technical rebound and it can reach the zone of 1,812; 1,816 and could even reach the critical zone of 1,824 to 1,830.
On the other hand, in case of gold falls below the psychological level of 1,800 and even falls below the 200 EMA located at 1,799 it will be a clear signal to sell with targets at 1,781 (5/8 Murray).
According to the 4-hour chart, we can see that gold left a gap between the close of the session on Friday and the opening of negotiations this week. In the event that gold continues to rise, there will likely be more bearish pressure if it reaches the zone of 1,824-1,830.
The eagle indicator is giving a positive signal which is probable that there will be a bullish movement in gold in the next hours and it can reach the resistance zone of 1,824 - 1,830.
Our trading plan for the next few hours is to expect a bounce to buy around 1,804 (21 SMA), with targets at 1,812 and 1,824. In the event that there is a pullback towards 1,824-1,830 it will be considered an opportunity to sell with targets at the close of the GAP around 1,798.
