Gold is trading around $5,033 with an upward bias and showing consolidation above the psychological level of $5,000. This indicates that gold could continue its rise in the coming days and reach 100% of the Fibonacci expansion around $5,351.
If gold retreats, we could expect it to find good support around the 21 SMA located at $4,928, which could be seen as an opportunity to open long positions.
If the correction goes on, gold is likely to find good support around the lower band of the uptrend channel formed since early February around $4,780. This would be a technical rebound and an opportunity to open long positions.
A consolidation below $4,750, where the 200 EMA is located, could be seen as a bearish scenario, as it could also lead to a break in the uptrend channel. Hence, gold is expected to return to support levels around the 6/8 Murray located at $4,375.
The Eagle indicator is showing oversold signals, so any pullback in gold in the coming days will be seen as an opportunity to open long positions.
If, in the coming hours, gold consolidates above $5,100 around the 61.8% Fibonacci expansion, it will be seen as an opportunity to continue buying at $5,232 and around the upper band of the uptrend channel level, which coincides with the +1/8 Murray around $5,312.
