SINGAPORE: Spot gold may extend its bounce towards a range of $1,803-$1,817 per ounce, following its stabilisation around a support at $1,786.
The support is strengthened by a similar one established by a rising trendline.
Coincidentally, a five-wave cycle ended around these supports.
The drop from $1,5876.90 is so enough that it confirms a reversal of the trend from $1,720.49. As a result, the current bounce may be weak, to end below $1,817.
Gold price increases by Rs2,500 in local market
A break below the trendline support around $1,780 could confirm the continuation of the downtrend towards $1,758.
On the daily chart, both a wedge and the wave pattern suggest a medium-term target of $1,684.
The doji on Wednesday signals a temporary completion of the steep fall.
The main activity over the next few days could be a slow bounce.
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.
Comments
Comments are closed for this article.