SINGAPORE: Spot gold is poised to retest a support at $1,641 per ounce, a break below which could open the way towards $1,614-$1,629 range.
The consolidation triggered by the support seems to be shaped into a triangle, which may turn out to be a bearish continuation pattern, as it developed after a drop.
Together with the drop, the triangle forms a more bearish pennant, which suggests a target far below $1,614.
A break above $1,657 may lead to a gain to $1,672.
On the daily chart, the support at $1,638 triggered a bounce, most of which was confined below $1,657.
Spot gold neutral in $1,641-$1,658 range
The weak bounce only signals a prevailing bearish sentiment.
Wave pattern suggests the progress of a wave “a”, the ninth wave of a triple-zigzag.
A falling channel indicates a target around $1,536.
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