Spot gold may test resistance at $1,847
- A break above the trendline would be a major victory of bulls, as it confirms a reversal of the downtrend from $2,072.50.
SINGAPORE: Spot gold may test a resistance at $1,847 per ounce, a break above which could lead to a gain to $1,876.
The metal is riding on a powerful wave (iii), which is capable of travelling to $1,876. A shallow correction from the May 7 high of $1,842.91 seems to be ending around a support at $1,830.
A drop to $1,827 could confirm a break below the support at $1,830.
A bearish target of $1,816 will be established then.
On the daily chart, gold is rising towards a falling trendline, which establishes a resistance around $1,850.
A break above the trendline would be a major victory of bulls, as it confirms a reversal of the downtrend from $2,072.50.
A retracement analysis on the downtrend reveals a resistance at $1,874, the 50% level, which will pose a big challenge. A consolidation around this level is much expected.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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