GOLD: Bulls to reach 4/8 Murrey Math Level

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Gold has been moving sideways since the first pullback from 3/8 Murrey Math Level happened. At the same time, there're several pullbacks from 2/8 MM Level, which is acting as support. Moreover, the price hasn't fixated below the Daily SuperTrend Indicator Line, which highlights an opportunity to have another bullish rally.

The main intraday target is 4/8 MM Level. However, we also should watch 3/8 MM Level, which acted as resistance many times before. In this case, if just another pullback from this level happens, there'll be a moment for a local bearish correction before the main upward price movement resumes. In this case, we should watch the SuperTrend lines as a possible starting point for the next stage of the bullish rally.

There're two pullbacks from -1/8 MM Level in a row, which points to an opportunity to have at least an upward correction. Thus, we should keep an eye on 2/8 MM Level as the nearest short-term target because this line might be a starting point for a local downward correction towards 1/8 MM Level. The subsequent pullback from this level could lead to another advance in the direction of 4/8 MM Level.

Besides, we should monitor the SuperTrend lines, which are about to form a 'Bullish Cross'. If this happens, there'll be a strong confirmation for the outlook. Meanwhile, if the market returns below the SuperTrend lines straight away, the bullish scenario will be at risk. In such a case, we should wait until the price returns above these lines and fixates higher 1/8 MM Level.

The material has been provided by InstaForex Company - www.instaforex.com