Early in the American session, gold is trading around 2,730 within the symmetrical triangle pattern forming since October 21, below 3/8 Murray, and below the 21 SMA.
On the H4 chart, we can see that after having made a strong technical correction from the high of 2,758 to the low of 2,708, gold is reaching the 61.8% zone, which means that the metal could resume its bearish cycle.
We could look for opportunities to sell gold if the price approaches 2,734 or 2,740 in the next few hours. Both levels act as strong resistance and suggest an opportunity to sell.
Technically, gold is overbought. So, as long as the instrument trades below the 61.8% Fibonacci at 2,740, any technical bounce will be seen as an opportunity to sell.
In case gold falls below the 32.8% Fibonacci level located around 2,728, we could expect a further bearish movement. If this scenario comes true, we can sell with targets at 2,696, and finally at 2/8 of Murray at 2,656.
