Gold is trading around 4,071 after reaching a weekly high of around 4,250 last week. Gold could rebound above 4,062 in the coming hours, as this level is where the 6/8 Murray line is located, which acts as strong support.
If gold consolidates above 4,062, it will be seen as an opportunity to open long positions, with targets at 4,099 and around the 21 SMA located at 4,149.
If gold falls below 4,062, the downward movement is expected to continue, and the instrument could reach the 200 EMA around 4,014 and could even cover the GAP left around the psychological level of $4,000. Finally, the price could reach 5/8 Murray at 3,906.
The Eagle indicator is showing a negative signal, so we expect gold to reach the resistance level of 4,149, which will be attractive to bears, and we could sell with targets at the psychological level of $4,000.
