- Based on another retracement analysis on the fall from $1,959.01, gold may drop into $1,784-$1,818 range.
SINGAPORE: Spot gold may test a support at $1,842 per ounce, a break below which could cause a fall to $1,825.
The bounce triggered by this support has been deeply reversed.
The reversal signals a continuation of a downward wave c from $1,902.70.
The metal has broken a rising trendline. The break confirms a reversal of the uptrend from $1,677.61. A retracement analysis reveals a target zone of $1,797-$1,825.
The bounce could be regarded as a pullback towards a resistance at $1,860 and the rising trendline. A break above $1,865 could lead to a gain limited to $1,879.
On the daily chart, the metal failed to break a key resistance at $1,921, the 61.8% retracement of the downtrend from $2,072.50 to $1,676.10.
This failure, along with a false break above a falling trendline, confirms a completion of the uptrend from $1,676.10 or a continuation of the downtrend from $2,072.50.
Based on another retracement analysis on the fall from $1,959.01, gold may drop into $1,784-$1,818 range.
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