SINGAPORE: Spot gold is expected to test support at $1,280 per ounce, with a good chance of breaking below this level and falling more to the Aug. 21 low of $1,273.06.
The rebound from this low has completed, as it could be divided into five small waves.
A Fibonacci retracement analysis on the fall to this low from the Aug. 8 high of $1,322.60 reveals support at $1,280, the 14.6 percent level, which may be easily broken, as the drop from the Aug. 28 high of $1,296.50 is considered as a resumption of the preceding downtrend falling from $1,322.60.
Gold failed to break a higher support at $1,285 at its first attempt, but may succeed at its current attempt.
Resistance is at $1,292, the 38.2 percent level, a break above which will make signals neutral.
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.
Comments
Comments are closed.