FX.co ★ Trading Signals for GOLD (XAU/USD) on March 7-8, 2024: sell below $2,140 (+2/8 Murray - overbought)

Gold is trading around 2150.05, below the all-time high reached around 2,152 with a strong bullish bias but could face rejection around 2,156. Gold has resistance around +2/8 Murray which represents this an extremely overbought level. If the instrument continues to trade below this area, a strong technical correction is imminent.

According to the daily chart, gold has been extending a bullish movement for 8 consecutive days. We see strongly overbought conditions on H4 and H1 charts. However, there are no signs of exhaustion.

The daily chart shows that the eagle indicator continues to give a bullish signal, although we can see that the instrument could face resistance at the December 2023 level. Since then, it could favor a fall of gold.

The pivot point is located around 2,140. So, the outlook for gold could remain bullish if it trades above this area. The metal is expected to continue rising in the coming hours and could reach +2/8 Murray located at 2,156 and even the strong weekly resistance located at 2,170.

Conversely, in case gold breaks below 2,156, it could be seen as an opportunity to sell below this area with targets at 2,140. Around this area, the bullish cycle could resume and could be seen as an opportunity to buy.

Additionally, if bearish strength prevails and if gold breaks below 2,140, it could be seen as a signal to sell, with targets at 2,195, 2,109 and finally, at 6/8 Murray around 2,093.

Our trading plan is to sell gold only in case 2,156 acts as a barrier or we should wait for XAU/USD to fall below 2,140 to sell, with the target at 2,093. The Eagle indicator is giving overbought signals, so a technical correction is imminent in the next few days.