Spot gold to retrace to $1,772
SINGAPORE: Spot gold is expected to retrace to $1,772 per ounce, according to its wave pattern and the RSI indicator.
A small five-wave cycle has been completed on the rise from $1,722.50 to $1,787.28, and that has been confirmed by a bearish divergence on the 10-minute RSI indicator.
Based on a Fibonacci retracement analysis, gold would retrace to the 23.6 percent level, which could be the minimum depth, and a fall below would trigger a further loss to $1,763, the 38.2 percent level.
A rise above $1,787 will invalidate the bearish outlook.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Copyright Reuters, 2011
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