- The metal is poised to fall towards $1,805, the 50% level of a wave C from $1,959.
SINGAPORE: Spot gold may retest a support at $1,840 per ounce, as it has completed a bounce from the Jan. 18 low of $1,809.90.
The bounce was driven by a wave B, the second wave of a three-wave cycle from the Jan. 6 high of $1,959.01. This wave is expected to be reversed by the current wave C.
A projection analysis reveals a support at $1,840, the 23.6% level, which temporarily stopped the wave C. However, this wave is capable of travelling to $1,783. Eventually, the support will be broken.
On the daily chart, the evening star forming between Jan. 20 and Jan. 22 also signals the completion of the bounce from $1,809.90. The metal is poised to fall towards $1,805, the 50% level of a wave C from $1,959.
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