Early in the American session, gold is trading around 3,300, below the 21 SMA, and below the 200 EMA. We have seen a strong technical correction below 3,390 in recent hours, and a technical rebound at current price levels is realistic.
This area of 3,300 represents strong support, but we believe gold could make a technical rebound in the coming hours toward 3,327. At this point, it could resume its bearish cycle.
We see good support at about 6/8 Murray at 3,281. It is likely to be seen as a buying opportunity. Technically, we see a sharp decline, and a recovery above this area is probable.
Our trading plan for the next few hours is to buy gold above 3,300 or wait for it to reach the strong resistance at 3,327 to sell with a target at 3,281 and eventually fill the gap the instrument left on May 14 around 3,197.
