Gold is trading around $4,214 within the downtrend channel formed since November 27 and is likely to continue falling in the coming hours as it encountered strong resistance around $4,248.
If gold attempts to break through the top of the downtrend channel around $4,250, it will be seen as a signal to open short positions with short-term targets around $4,160.
The Eagle indicator is showing a negative signal, so we will look for opportunities to sell gold in the coming hours below the 7/8 Murray located at $4,218 or even if the price falls below the 21 SMA with a target at $4,170.
If the price rebounds and attempts to reach resistance levels around $4,230 - $4,245, this zone could act as a barrier for gold and could be seen as an opportunity to open short positions.
A break and consolidation above the downtrend channel and above $4,250 could push the price to reach the 8/8 Murray at $4,375.
Our trading plan for the next few hours is to sell gold. Any technical rebound as long as the price consolidates below $4,250 will be seen as a clear signal to sell. The Eagle indicator supports our bearish strategy.
