- A projection analysis reveals a support at $1,840, the 23.6% level, which triggered a moderate bounce.
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. The third wave labelled C may have started. It is expected to reverse the wave B.
A projection analysis reveals a support at $1,840, the 23.6% level, which triggered a moderate bounce.
Resistance is at $1,864, a break above which could lead to a gain to $1,875.
A further gain, however, will signal the extension of the wave B towards $1,884-$1,902 range.
On the daily chart, the metal is temporarily stuck in a neutral range of $1,841-$1,886, formed by the 38.2% and the 23.6% projection levels of a downward wave C from $1,959.
A break below $1,841 could confirm the continuation of the wave C towards $1,804.
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