SINGAPORE: Spot gold may end its bounce below a resistance at $1,928 per ounce, and retest a support at $1,879.
The high of $1,973.96 on Thursday is regarded as the ending point of a wave (c), as strongly suggested by the immediate deep fall after gold hit this level.
A detailed study on the ten-minute chart reveals a five-wave mode on the fall from $1,973.76. Such a wave mode simply suggests an extension of the drop below $1,878.49.
A retracement analysis on the fall marks a strong resistance zone of $1,926-$1,937, within which the current wave b would end and the downward wave c would start.
On the daily chart, the long-shadowed shooting star on Thursday signals a completion of the uptrend from $1,676.10.
The upper shadow is so long that it may be partially covered by the current weak bounce.
The bounce may end around $1,927, a break above which could lead to a gain to $1,945.
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