Gold is trading around $5,052. The instrument has been consolidating above the psychological level of $5,000 since February 7. Traders are awaiting a further upward movement, during which gold could reach the 1/8 Murray around 5,312.
If gold continues its upward cycle in the coming hours, we could expect good support for opening long positions around $4,984 or around the lower band of the upward trend channel located at $4,905.
Gold has a zone of resistance around 61.8% Fibonacci at $5,120. If it reaches this level in the coming days and encounters strong resistance, it could be seen as an opportunity to open short positions, and it is likely to reach the 200 EMA around the 7/8 Murray located at $4,778.
The Eagle indicator is showing a positive signal, so gold will likely continue to rise in the coming days. Thus, we can look for opportunities to buy whenever gold pulls back or reaches daily or weekly support levels.
The bullish outlook could be invalidated if gold decisively breaks the uptrend channel and consolidates below $4,900.
