- This support is almost identical to $1,840 (hourly chart). A break could open the way towards $1,805.
SINGAPORE: Spot gold is poised to break a support at $1,840 per ounce, and fall to $1,818.
The metal 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. Following its first failure to break $1,840, gold may succeed in its current attempt.
A break above $1,853 may lead to a gain to $1,864. On the daily chart, gold is testing a support at $1,841, the 38.2% projection level of a downward wave C from $1,959.
This support is almost identical to $1,840 (hourly chart). A break could open the way towards $1,805.
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