Early in the American session, gold is trading around 3,335, rebounding after reaching the 21SMA at 3,327. Gold could continue its bullish cycle if it consolidates above 3,320 in the coming hours.
If the bullish outlook for gold remains valid, it could reach 3,360, the price level from Friday of last week, and could even continue rising to 3,437 around the 8/8 Murray level.
The Eagle indicator is reaching the overbought zone. So, if gold reveals exhaustion, we could expect a sharp breakout of the uptrend channel.
This drop could only be confirmed on the condition of a break below 3,320. Then, gold could reach the 6/8 Murray level at 3,281 and even 3,246 around the 200 EMA.
Gold gapped around 3,198 on May 16. It is likely that after breaking below 3,320, the instrument could accelerate its decline.
