SINGAPORE: Spot gold may rise into a range of $1,992 to $2,009 per ounce, as it has recovered strongly from the Wednesday low of $1,934.19. A retracement analysis on the fall from $2,009.59 reveals that about 61.8% of the fall has been reversed.
Even though it is not clear that the uptrend from $1,809.27 has continued, the reversal does increase the chance of the metal to revisit the high of $2,009.59.
Wave pattern suggests the completion of a five-wave cycle at $2,009.59.
Based on this wave count, the current rise may stop around $2,009, to form a part of a double-top.
Support is at $1,963, a break below could trigger a deep a drop into $1,934-$1,952 range.
Spot gold may bounce into $1,951-$1,958 range
On the daily chart, an evening star forming between March 17 and March 21 was counteracted by a piercing pattern between Tuesday and Wednesday.
It is difficult to choose and rely on these conflicting signals.
A further development of the chart would clear the doubt.
Readings on the hourly chart suggest an upside bias.
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