Gold is trading around 3,865 with a positive bias and could continue its rise in the coming days, reaching +2/8 of the Murray level at 3,906. The bullish trend channel formed since September 18 is favoring a further upward movement.
On the H4 chart, we can see that gold, after reaching a high around 3,870 in the last 24 hours, made a strong technical correction until reaching the support of this channel around 3,795.
Gold, after reaching a low at the bottom of the bullish trend channel and around the 21SMA, found a strong technical rebound and is now trading at yesterday's high and could continue its rise in the coming hours, reaching 3,881 and 3,906.
Technically, gold is overbought, so a strong technical correction is expected in the coming days, and gold could reach the Murray 8/8 around 3,750.
Our trading plan is to open short positions in gold if there is a sharp breakout of the bullish trend channel and a consolidation below the 21SMA around 3,807. If this scenario occurs, we could sell with targets at 3,750, 3,711, and around 3,671. The instrument could even reach the 200EMA around 3,615.
