SINGAPORE: Spot gold may revisit its Nov. 15 high of $1,786.35 per ounce, driven by a wave c. This wave has travelled above its 100% projection level of $1,775.
It has a better chance of extending into $1,789-$1,798 range.
However, the wave c sometimes ends around its 114.6% projection level.
It is thus critical that gold remains above a support at $1,767 to fulfil its target of $1,786.35.
A break below $1,767 may confirm the completion of the wave c.
A bearish target of $1,739 will be established accordingly. On the daily chart, gold looks neutral in a range of $1,721-1,788.
A break above $1,788 could confirm a small double-bottom and a target of $1,842, while a failure will be followed by a drop towards $1,721.
Most likely, gold would fail to break $1,788, which is near the top of a wave b.
Wave theory indicates that the top works as a strong resistance.