Gold is trading around 2,025, within the uptrend channel forming since February 14 and showing some rebound after having reached the bottom of the uptrend channel around 2,019.54.
If gold consolidates above the 200 EMA in the next few hours, we could expect a bullish advance to occur and the metal could reach 2/8 Murray at 2,031. Once this level is surpassed, gold could gain bullish acceleration and could reach the top of the uptrend channel around 2,046, a level that coincides with 3/8 of Murray.
On the contrary, if a sharp break of the uptrend channel occurs and the instrument closes below the 200 EMA and below the 21 SMA around 2,024 on the daily chart, we could expect a bearish sequence and gold could reach 1/8 Murray at 2,015. From there, it could reach the psychological level of $2,000 and finally -1/8 of Murray located at 1,984.
Technically, in the coming days, gold still has some possibility to continue rising according to the eagle indicator and could reach the strong resistance of 2,046 and even 4/8 of Murray at 2,062. However, the latest negotiations this week show that gold is showing signs of exhaustion as it is facing strong resistance at 2,031.
Therefore, the key will be to monitor 2,031. If gold consolidates above this area, we could see it as a positive signal to continue buying, but if gold trades below, a bearish acceleration is likely to occur in the coming days.
