SINGAPORE: Spot gold has found a temporary support around $1,228 per ounce, and may hover above this level for half a trading session before falling towards the next support at $1,219.
The depth of the fall from the Oct. 21 high of $1,255.20 suggests a reversal of the uptrend from the Oct. 6 low of $1,183.46. Even if this trend could extend, gold may still have a better chance of falling into a range of $1,211-$1,219, formed by the 61.8 percent and the 50 percent Fibonacci retracements on the uptrend.
The support at the 38.2 percent level of $1,228 has triggered a moderate bounce, but it may not be strong enough to cause a bullish reversal.
** 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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