SINGAPORE: Spot gold may break a resistance at $1,832 per ounce and rise to $1,842, driven by a wave C.
This wave is expected to travel into a range of $1,842-$1,874.
The pause around $1,832 will be temporary. A retracement analysis on the fall from $1,916.40 to $1,749.20 reveals a failure of the metal to break the 50% level of $1,833 in its first attempt on July 15.
However, gold may succeed in its current attempt, as the wave C has a fierce character and may easily overcome this barrier.
Spot gold to retest support at $1,789
Support is at $1,822, a break below which could cause a fall to $1,810. On the daily chart, the metal is riding on a wave c from $1,749.20, which is capable of travelling into $1,840-$1,897 range. In its full capacity, the wave c could extend to $1,988.
The pattern from the Nov. 30, 2020 low of $1,764.29 looks like an inverted head-and-shoulders, which will be confirmed when gold goes above $1,932.
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.
Comments
Comments are closed for this article.