Trading Signals for GOLD (XAU/USD) sell below $3,227 (+1/8 Murra

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My GOLD (XAU/USD) sell trade setup looks like this.

Entry; 3215 @ 3219

Stop Loss: 3229

Target 1: 3168

Target 2: 3128


My Trade Analysis:

Early in the American session, gold is undergoing a strong technical correction after reaching a new high around 3,231-3,237 could occur, and the yellow metal could even surpass its high.

The strong volatility in gold suggests caution and lower risk when trading.
Technically, gold has not shown any technical correction so far.

Since the rebound on April 8th around 2,968, it has reached its current high around 3,237, indicating that a new bearish cycle could follow.

We could expect a strong technical correction toward the 8/8 Murray at 3,125 in the coming days. The metal could even reach the 21st SMA located at 3,089.

Technically, XAU/USD is overbought on the daily chart. A strong technical correction is highly probable in the coming hours or even next week. We could expect gold to return to 3,125 or even the psychological level of $3,000.

If gold breaks and consolidates above 3,235, we can expect it to continue rising to 3,245 (daily R_2) and eventually reach the strong resistance of the +2/8 Murray at 3,281, which could act as a barrier.

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