Gold is trading around $4,318 within a downtrend channel formed since December 29. Gold is under bearish pressure, so we could expect it to continue falling in the coming days until it reaches strong support around $4,272.
If gold rebounds around $4,270 in the coming days, it could be seen as an opportunity to open long positions with a target at $4,375.
A sharp break below the 200 EMA and below the support formed since December 11 could enable a fall towards the 7/8 Murray located at $4,218. The instrument could eventually reach the psychological level of $4,000.
If the bullish force prevails and gold consolidates above $4,375, we could expect it to reach $4,437 in the coming days and, finally, return to the +1/8 Murray located at $4,531.
The Eagle indicator is showing signs of overselling, so it is likely that gold will continue to fall until it finds good support. From that level, a strong technical rebound could follow.
