SINGAPORE: Spot gold may test a resistance at $1,814 per ounce, a break above which could lead to a gain to $1,826.
The metal is riding on a wave e, the fifth wave of a five-wave cycle from $1,720.49, which is supposed to extend to $1,826, as pointed by a rising trendline.
The drop from the Oct. 22 high of $1,813.64 has been mostly reversed. The reversal signals a continuation of the uptrend. A drop below $1,795 could put this bullish outlook in doubt.
On the daily chart, gold broke a falling trendline, and closed above a resistance at $1,800 on Monday. It may rise towards the next resistance at $1,828.
The metal failed a few times to break $1,828. It may succeed in its current attempt. A break will confirm the progress of a strong wave (c) towards $1,916.
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