- A break below $1,786 could signal the continuation of the downtrend towards $1,758-$1,774 range
SINGAPORE: Spot gold may test a resistance at $1,803 per ounce, a break above could lead to a gain to $1,817.
The support at $1,786 may hold for a while as it is strengthened by a similar one established by a rising trendline. In the meantime, a five-wave cycle ended around this support, significantly increasing the chance of a further bounce.
A break below $1,786 could signal the continuation of the downtrend towards $1,758-$1,774 range.
On the daily chart, the metal is riding on a wave C, the third wave of a three-wave cycle from the August 7, 2020 high of $2,072.50.
This wave is capable of travelling below $1,684.37.
The lower trendline of a wedge suggests a target of $1,684 as well.
As a result, the current bounce could be weak and short-lived.
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