Early in the American session, gold (XAU/USD) is trading around 2,734 within the uptrend channel forming since October 13 and below 3/8 of Murray.
Having reached a high of 2,740, gold made a strong technical correction towards 2,717. From this level, we observe that it is bouncing now. So, the instrument could reach 2,740 or above.
In case the gold price fails to consolidate above this area, we could see a technical correction occur again.
If the bullish trend continues to prevail, gold could reach 2,753, which represents a daily R_2 resistance and the weekly W_1 resistance. This area is a strong point and could be seen as an opportunity to sell.
In case the instrument falls below 2,740, we could look for opportunities to sell with the target at 2,719. A break below the 21 SMA could mean a change in the trend of gold and the metal could reach 2,656 where 2/8 of Murray is located.
The eagle indicator is in an overbought zone, which means that a technical correction is imminent in the coming days. For this, we will look to sell if the price consolidates below 2,740.
