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.
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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.
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