Spot gold may retest support at $1,828
- Resistance is at $1,846, a break above which could lead to a gain to $1,861. On the daily chart, gold failed to break a resistance at $1,865, the 50% retracement on the fall from $1,965.33 to $1,764.29.
SINGAPORE: Spot gold may retest a support at $1,828 per ounce, a break below which could cause a fall to $1,798.
The support is identified as the 23.6% projection level of a downtrend from $1,875.07. There is a close mathematical relation between this trend and the preceding downtrend from the Nov. 9 high of $1,965.33.
Resistance is at $1,846, a break above which could lead to a gain to $1,861. On the daily chart, gold failed to break a resistance at $1,865, the 50% retracement on the fall from $1,965.33 to $1,764.29.
The failure suggests the completion of a wave b, which may be reversed by the current wave c. A realistic target zone will be from $1,794 to $1,812.
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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