Gold is trading around $4,080, reaching the top of the trend channel formed since November 18. It will likely encounter resistance at 4,090 in the coming hours as it is reaching strong resistance levels.
If the bullish force prevails and gold breaks through and consolidates above $4,080, we could expect it to continue rising until it reaches $4,141 in the coming days. The price could even reach the 7/8 Murray at $4,218.
On the contrary, if gold breaks below the 200 EMA below $4,076, we could expect it to continue falling until it reaches $4,062. The price could finally reach the bottom of the downtrend channel around $3,990.
The Eagle indicator is reaching exhaustion levels, so a technical correction is expected in the coming days towards the psychological level of $4,000.
Conversely, a consolidation above $4,100 or $4,080 could be seen as a clear signal to buy in the coming days, with targets at $4,150 and $4,200.
