Gold is trading around $4,141 within an uptrend channel that has been forming since June 29 and is reaching resistance levels around $4,204. Gold has attempted to break through this zone three times without success, so we are now seeing a strong technical correction that could enable a further fall in the coming days until the instrument reaches the 2/8 Murray level.
The Eagle indicator has reached overbought levels, and gold is likely to continue falling in the coming days until it reaches the lower band of the uptrend channel around the psychological level of $4,000.
Conversely, if gold returns to $4,200 or $4,218—where the 3/8 Murray level is located—in the coming hours, this zone could be seen as a good point to open short positions.
The 21 SMA is around $4,116; this dynamic support level could offer a good entry point for long positions if gold consolidates in this zone over the next few hours. This could be seen as a buy signal with a target at $4,218. The instrument could even reach the 200 EMA around $4,257.
