Gold is trading at 2,334, above the daily pivot point, and within the downtrend channel forming on the H1 chart. Gold is showing signs of overselling and is now consolidating above the 21 SMA which means that there could be a continuation of the technical bounce and the instrument could reach the 200 EMA located at 2,370 and even the top of the downtrend channel around the 2,375.
If the price falls below 2,330 in the next few hours, it could continue its decline and could reach the first daily support at about 2,323. Gold could even accelerate its decline until reaching the bottom of the downtrend channel around 2,312.
On the other hand, if gold consolidates and settles above 2,335 in the next few hours, the outlook could be positive and could reach the daily R_1 at 2,343, daily R_2 at 2,352 and finally it could reach the weekly pivot point at 2,361.
In case gold falls below the low of 2,330, we should avoid buying as a bearish acceleration could occur. The best solution would be to wait for a new technical rebound.
Since May 23, the eagle indicator since May 23 has been giving a positive signal. So, we believe that a technical rebound above 2,335 will offer an opportunity to buy. On the contrary, a technical rebound at 2,323 could also be seen as a signal to buy.
