- A dotted trendline suggests a lower target around $1,750.
SINGAPORE: Spot gold may test a resistance at $1,746 per ounce, a break above which could lead to a gain into the $1,761-$1,783 range.
The bounce from the March 8 low of 1,676.10 consists of three waves. The wave c is unfolding towards $1,746, the 86.4% projection level of a downtrend from $1,875.26.
The current readings of the trending signals are that the downtrend remains intact. However, once gold breaks $1,761, the downtrend from the Jan. 6 high of $1,959.01 would be likely to reverse.
A break below $1,716 could be the very early warning signal that the downtrend may have resumed. On the daily chart, gold has cleared a resistance at $1,724, it is expected to rise towards $1,769.
A dotted trendline suggests a lower target around $1,750. The rise is driven by a wave 4, which will be reversed by a downward wave 5.
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