SINGAPORE: Spot gold may edge up to a resistance at $1,258 per ounce before retesting a support at $1,243, as indicated by a Fibonacci projection analysis and the hourly RSI.
The support and the resistance are identified as the 123.6 percent and the 100 percent Fibonacci projection levels of a downward wave C that developed from the Aug. 8 high of $1,322.60.
The bullish divergence on the hourly RSI suggests a dissipation of the bearish momentum.
Even though the wave C may eventually extend below $1,243, it seems to have paused around this level.
A break below $1,243 will open the way towards a range of $1,218-$1,233, formed by the 161.8 percent and the 138.2 percent projection levels.
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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