SINGAPORE: Spot gold may edge up to $1,299 may break a resistance at $1,291 per ounce and edge up to the next resistance at $1,299.
These resistances are identified as the 61.8 percent and the 50 percent projection levels of a downward wave C from $1,324.33.
The bounce from the April 23 low of $1,265 consists of three waves. The third wave labelled c could be further broken down into five smaller waves.
The shallow correction on Monday was driven by the fourth wave labelled 4, which is expected to be reversed by the wave 5. A rising trendline points at a target range of $1,291-$1,299. A break below $1,274 could signal the continuation of the wave C towards $1,258.
On the daily chart, gold is retesting a resistance at $1,284. It is expected to overcome this barrier and edge towards a trendline resistance around $1,297, which falls within the range of $1,291-$1,299 (refer to hourly chart).
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of to retrieve the original reports.
** 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.
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