16.07.202418:35 Forex Analysis & Reviews: Trading Signals for GOLD for July 16-18, sell below $2,468 (7/8 Murray - overbought)

Relevance up to 12:00 2024-07-30 UTC--4

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Early in the American session, Gold is trading around 2,448, above the 6/8 Murray, and above the 21SMA and the 200 EMA.

On the H4 chart, we can see that gold is showing overbought signs but maintains a strong bullish momentum. So, the metal is likely to continue rising in the coming days reaching 7/8 of Murray located at 2,468.

Gold has the second daily resistance around 2,459. Thus, gold could find strong rejection in this area. If bullish strength prevails, the price could reach 7/8 Murray at 2,468.

Given that gold has a strong upward trend, we should expect it to reach 2,459. Once the price settles above this area, it will head for 2,468, allowing traders to sell.

As long as gold trades below 2,467, the instrument is going through a strong technical correction. Therefore, a trend reversal below this area could be imminent and a drop towards the psychological level of 2,400 could occur.

On the other hand, if gold falls below 6/8 Murray, the outlook could remain negative and we could expect a technical correction in the coming days. Thus, the metal could reach the 21 SMA located at 2,417.

The Eagle indicator is showing extremely overbought signs which supports our bearish strategy.

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