- A rise to $1,803 may confirm the break and the target zone.
SINGAPORE: Spot gold may test a resistance at $1,802 per ounce, and a break could lead to a gain to $1,816. The uptrend from $1,677.70 could have resumed.
It is riding on a wave C which is capable of travelling to $1,830.
A resistance at the April 22 high of $1,797.67 has caused a shallow correction which may end around $1,784.
There is a slim chance the metal could break $1,784 and fall into a zone of $1,765-$1,773, as the support is strengthened by another one established by a short falling trendline.
On the daily chart, the big white candlestick on Monday confirms the completion of the fall triggered by the resistance at $1,799.
Indeed, this fall could have prepared bulls with enough momentum to break $1,799 and rise into $1,828-$1,875 range.
A rise to $1,803 may confirm the break and the target zone.
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