Spot gold may test resistance at $1,759
- The contract is riding on a wave c, which may either end around $1,759 or extend to $1,785
SINGAPORE: Spot gold may test a resistance at $1,759 per ounce, a break above which could lead to a gain into $1,769-$1,785 range.
The contract is riding on a wave c, which may either end around $1,759 or extend to $1,785.
The correction triggered by $1,759 seems shallow. It has almost been reversed.
The reversal signals a continuation of the wave c towards $1,785. Support is at $1,743, a break below which could confirm a completion of the wave c. A bearish target of $1,717 will be established accordingly.
Spot gold may test resistance at $1,759
On the daily chart, the current bounce is classified as a pullback towards a rising trendline. The pullback may end in the range of $1,765-$1,785, which is formed by the 38.2% projection level and a presumed resistance established by the trendline.
It must be noted that the downtrend from $1,916.40 has not completed. It is riding on a big wave C, which could travel to $1,520 in its full capacity. A break below $1,718 may confirm the continuation of this wave.
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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