SINGAPORE: Spot gold may bounce to a resistance at $1,250 per ounce before falling again, as it has stabilised around a support at $1,239.
The resistance and the support are identified respectively as the 50 percent and the 61.8 percent projection levels of a downward wave C, the third wave of a three-wave cycle from the Sept. 8 high of $1,357.54.
A small spinning top on the daily candlestick chart confirms the stabilisation. Strengthening the support is another one at $1,241, the 76.4 percent retracement of the uptrend from the July 10 low of $1,204.45 to $1,357.54. It could be much easier for the metal to rise than to drop.
A break above $1,250 could lead to a gain to $1,262 while a break below $1,239 could cause a loss to $1,225.
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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