Early in the European session, gold is trading around 3,334, showing exhaustion, as it bounced above 3,300 during yesterday's American session. This price level for gold is key, as we could expect a technical correction below this area.
The chart shows that it is attempting to break the top of the uptrend channel. However, due to a lack of volume and low liquidity, a technical correction could follow.
This level could be key for bears as it could pressure gold, which could cover the gap left at 3,288 and even reach the bottom of the downtrend channel around 3,236.
If gold breaks the downtrend channel and consolidates above 3,340, the outlook could be bullish. The metal could then reach 3,359, 3,390, and even the Murray 8/8 around 3,515.
Our trading plan for the next few hours is to sell gold below 3,340, with targets at 3,300, 3,290, and 3,281 (6/8 Murray).
