After breaking the strong resistance of the 6/8 Murray level, gold made a strong bullish move, reaching the 7/8 Murray level around the $3,400 level. However, this area is a strong barrier, as it has previously exerted strong pressure on gold.
According to the H4 chart, we see a technical correction, but it could be seen as a signal for the yellow metal to resume its bullish cycle in the coming hours, reaching the 8/8 Murray level at $3,437.
Conversely, if gold breaks below the symmetrical triangle pattern and falls below $3,370, the outlook could be negative, and we could expect it to reach the 4/8 Murray level around $3,281 in the short term.
We should pay attention to the $3,370 level. Bearish pressure could resume below this area. Hence, any technical rebound will be seen as an opportunity to continue buying above this zone.
The eagle indicator has reached the overbought zone, so we believe gold could undergo a strong technical correction in the coming days. We must be vigilant if the price falls below the 6/8 Murray level, which could trigger a strong technical correction.
