SINGAPORE: Spot gold looks neutral in a range of $1,783-$1,795 per ounce, and an escape could suggest a direction.
The consolidation from the Oct. 22 high of $1,813.64 is being shaped into a triangle, which may turn out to be a top pattern, as it followed the completion of a five-wave cycle.
Once confirmed, this pattern will suggest a target of $1,764.
The confirmation will be when gold breaks the nearest support at $1,783.
Spot gold may test $1,814, target of $1,826 intact
A break above $1,795 could lead to a gain into $1,802-$1,813. On the daily chart, the break above a falling trendline and a resistance at $1,800 proved to be false.
The metal is likely to test a support at $1,773.
The drop on Tuesday will be classified as a pullback towards a falling trendline, if gold closes above $1,800 on Wednesday.
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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