SINGAPORE: Spot gold may slide more into a range of $1,816-$1,828 per ounce, due to the completion of a five-wave cycle from $1,771.89.
The drop from $1,959.52 looks deep enough to confirm both a reversal of the uptrend from $1,727.50 and the reversal of a longer trend from $1,615.59.
A retracement analysis on these trends reveals a break below the support zone of $1,871-$1,878. The metal is supposed to fall into the next zone of $1,828-$1,844.
A rising trendline provides a temporary support, which triggered a pullback towards $1,871-$1,878 range.
It is difficult to identify the exact ending point of the pullback. Strategically, it will be more realistic to wait for the metal to break the trendline.
On the daily chart, a retracement analysis on the fall from $2,069.89 to $1,613.60 suggests a target of $1,842, as gold has broken the support of $1,896.
With the uptrend from $1,613.60 having reversed, it might be the time to form a bearish view that the downtrend from $2,069.89 has resumed.