Early in the American session, gold is trading around 2,636.20, below the 21 SMA, and below the symmetrical triangle pattern.
Yesterday, gold made a decisive break of the symmetrical triangle pattern and reached a low of 2,612. Since then, we have seen a strong technical bounce. If gold continues to rise, it could find an obstacle to overcome at about 2,644.
If gold reaches the area between 2,650 and 2,656 in the next few hours and if it fails to consolidate above 4/8 Murray, it could be seen as a signal to resume selling, with targets at 2,617 and eventually at 2578.
The outlook remains negative as long as gold trades below 2,656. Any technical bounce will be seen as an opportunity to sell. The goal of the gold bears is to cover the GAP that was left around 2,562.
