- These false breaks give it away that bears are bluffing around this level
SINGAPORE: Spot gold may test a resistance at $1,789 per ounce, a break above which could lead to a gain to $1,813.
A five-wave cycle from $1,902.70 may have completed at Tuesday's low of $1,749.20, which is near $1,744 - its 261.8% projection level, and close to $1,769, the 61.8% retracement of the uptrend from $1,677.61 to $1,916.40.
The downtrend from $1,916.40 could have reversed. Another retracement analysis on the trend confirms the reversal, as the current bounce observes closely the 14% level.
Support is at $1,760.90, a break below which may cause a shallow drop to $1,744. On the daily chart, there is another false break below $1,771, in addition to the one on June 18.
These false breaks give it away that bears are bluffing around this level.
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