Spot gold may test support at $1,773
- This wave is much shorter than the wave a. Such a relation indicates the formation of a bearish wedge. Resistance is at $1,800, a break above which could lead to a gain to $1,828
SINGAPORE: Spot gold may test a support at $1,773 per ounce, a break below which could cause a fall to $1,739.
The uptrend from $1,684.37 has reversed, as suggested by the deep fall from the Sept. 3 high of $1,833.80. The trend was driven by a wave c, the third wave of a three-wave cycle from $1,677.61.
This wave is much shorter than the wave a. Such a relation indicates the formation of a bearish wedge. Resistance is at $1,800, a break above which could lead to a gain to $1,828.
On the hourly chart, the wave c could be broken down into five waves. This structure is one of the typical characteristics of the wave c.
The current fall observes closely a set of projection levels on the rise from $1,716.57. The 100% level of $1,782 triggered a weak bounce which may have ended around $1,792. An extension of the bounce may be limited to $1,798.
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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