Gold traded around 3,957, rebounding after reaching the bottom of the uptrend channel formed on October 27th and attempting to break the 200-EMA, which is located around 3,960.
If gold consolidates above 3,960 in the next few hours, it could be seen as a buying opportunity, with targets at the 6/8 Murray level around 4,062. The price could potentially reach the top of the ascending trend channel around 4,087.
If the bullish momentum prevails, gold could continue rising to cover the cap left on October 24th around 4,110 and could even reach the 7/8 Murray level around 4,218.
Conversely, if gold falls below the weekly low around 3,930, we could see a further downward movement below this area. Therefore, it could reach the 5/8 Murray level around 3,906.
The Eagle indicator is showing a positive signal, so we should be watching for the price to consolidate above 3,960 to enter long positions.
