SINGAPORE: Spot gold may revisit its March 17 high of $1,391.76 per ounce over the next four weeks, as indicated by a Fibonacci retracement analysis and its wave pattern.
Gold failed twice to break support at $1,200, the 38.2 percent Fibonacci retracement on the rise from the 1970 low of $34.95 to the record high of $1,920.30.
Such a failure suggests the support is very strong and may have triggered a bounce towards the 23.6 percent level at $1,475, which, however, seems to be too far away to be reached within four weeks.
A closer study on the part of the chart from the end of June 2013 onwards indicates an upside bias as well.
The rise from the Dec. 31, 2013 low of $1,184.50 is classified as a three-wave cycle, the third wave of which labeled C is unfolding. This wave again consists of another three small waves.
A Fibonacci projection analysis reveals that the wave C may travel to $1,448, its 100 percent level, at its full capacity.
At least, this wave may extend into a range of $1,369-$1,399, respectively the 61.8 percent and the 76.4 percent projection levels.
Immediate support is at $1,271, the 14.6 percent projection level, a break below which could trigger a further loss to $1,240.61, the June 3 low. The bullish target at $1,391.76 will be aborted under this scenario.
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.