FX.co ★ Trading Signals for GOLD (XAU/USD) for April 24-26, 2024: buy above $2,318 (oversold - 5/8 Murray)

Gold is trading around 2,318, within a downtrend channel forming since April 10th and within another secondary downtrend channel forming since April 17th. The XAU trend could remain bearish and the instrument could reach the area of the 200 EMA at 2,265 and could even reach 4/8 Murray at 2,250.

If gold falls below 2,318 in the next few days, we could expect a resumption of the downtrend and the price could reach the bottom of the downtrend channel around 2287. If this level is broken, the yellow metal could quickly reach the dynamic support of 2,265.

The outlook could be positive for gold if it returns and consolidates above 5/8 Murray. However, if a sharp break occurs in the downtrend channel, we could look for opportunities to buy gold above the 21 SMA located at 2,348 with targets at the top of the downtrend channel around the psychological level of 2,400.

In the H4 chart, we can see that gold has left a GAP at about 2,392. If a recovery of the metal occurs in the next few days and if its price consolidates above 2,375, we could expect it to reach and cover this GAP. The price could even return to levels of 2,437.

Since April 23, the eagle indicator has been showing extremely oversold signals. It means that an imminent technical rebound could occur in the coming days and will be seen as an opportunity to buy.