SINGAPORE: Spot gold may revisit its May 30 low of $1,931.76 per ounce, as a bounce from this level could have completed. The completion is suggested by the sharp fall from the June 2 high of $1,983.29, which has deeply reversed the rise from $1,931.
Wave pattern suggests the progress of a wave e, the fifth wave of a five-wave cycle from the May 4 high of $2,072.19.
This wave may travel to either $1,931 or a much lower level of $1,890, as pointed by a falling trendline. Resistance is at $1,957, a break above could lead to a gain into the $1,964-$1,975 range.
On the daily chart, the metal is expected to retest a support at $1,939.
Gold failed to overcome this barrier at its first attempt, but highly likely to succeed at its current attempt.
Spot gold neutral in $1,988-$2,018 range
A break could open the way towards $1,898.
The correction against the uptrend from $1,613.60 looks far from complete.
It may extend to $1,804.20, the bottom of the wave D.
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