SINGAPORE: Spot gold is expected to retrace to $1,311 per ounce, due to a false break above the resistance zone of $1,338-$1,341.
The zone has been formed by two resistances at the 61.8 percent Fibonacci retracement on the fall from the Aug. 28, 2013 high of $1,433.31 to the Dec. 31, 2013 low of $1,184.50 and at the 61.8 percent Fibonacci projection level of an upward wave C that started at $1,184.50. A bullish target at $1,377 has been aborted.
Even though it could be too early to conclude a reversal of the uptrend rising from $1,184.50, at least a decent correction to $1,311, the 50 percent projection level, is much expected.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
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