SINGAPORE: Spot gold may drop into a range of $1,884 to $1,897 per ounce, as a wave c from $1,809.27 may have completed. The most convincing signal of the completion is the breakdown of this wave c into five smaller waves.
The wave 3 has extended so much that the wave 5 is unlikely to extend above $1,938. Strategically, the target zone of $1,883 to $1,897 will be confirmed when gold breaks $1,905.
Resistance is at $1,925, a break above could lead to a gain into $1,938-$1,951 range. On the daily chart, the big spinning top on Wednesday reflects a hesitation of the market.
Spot gold may retest resistance of $1,917
This pattern followed a small black candlestick on Tuesday.
These patterns combine to symbolize a disruption of the steady rise.
Market may have entered into a consolidation phase.
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