Early in the American session, gold is trading around 2,332 within the symmetrical triangle pattern and within the uptrend channel forming since June 7.
In the H4 chart, we see that gold is trading around the 200 EMA level which coincides with strong resistance. It could cause a breakout of the symmetrical triangle pattern which could open the doors for an upward movement that could push the price up to 2,370.
If gold fails to consolidate above 2,332, we could expect a technical correction. So, the price could reach the 21 SMA (2,325) considered an important key support which could set the stage for a technical rebound.
Conversely, if gold has got stuck under bearish pressure, the metal is expected to reach the bottom of the uptrend channel around 5/8 Murray at 2,312. This level is a good point to look for a buying opportunity.
Below 2,310, the outlook could be negative for gold and we could see a continuation of the bearish movement. Therefore, the instrument could reach 2,250 in the short term.
Our trading plan for the next few hours is to buy above 2,332 or wait for a technical bounce at 2,312 to buy with targets at 2,350 and 2,370. Stop loss could be placed below 2,310.
