Gold is trading around $4,081, rebounding after reaching the lower band of the descending trend channel formed on May 1st.
Gold hit a low of $4,011 around the psychological level of $4,000 and is now consolidating above the 5/8 Murray level.
If gold consolidates above $4,062 in the coming hours, it could be considered a buying opportunity with targets at the 21-period SMA around $4,215.
Given that gold has found strong support around $4,062 or $4,011, both levels could be considered opportunities to take long positions with short-term targets around the 6/8 Murray level at $4,375.
Should gold consolidate below the 5/8 Murray level, we could expect a continuation of the downward movement. However, before that, we should wait for the price to consolidate below the psychological level of $4,000. This could accelerate the downward movement and reach the 4/8 Murray level around $3,750.
The Eagle indicator has reached extremely oversold levels and is giving a positive signal. Therefore, we expect a technical bounce around the 5/8 Murray level, and a move above this zone could be seen as an opportunity to take long positions.
