SINGAPORE: Spot gold may fall into a range of $1,966-$1,977 per ounce, as suggested by a rising channel.
The current fall looks so deep that it is not only against the short uptrend from $1,949.55 but also against the longer trend from $1,934.19.
The wave pattern appears to be confusing. Could the current fall be driven by a wave 4, the fourth of a five-wave cycle from $1,934.19?
The complex structure of the rise from $1,934.19 does indicate such a possibility.
Under this scenario, gold may drop to $1,977, near the bottom of the small wave ii, before rising again.
Spot gold may fall into $1,987-$1,994 range
Resistance is at $2,000, a break above which could lead to a gain into $2,011-$2,021 range.
On the daily chart, both a triangle and a pennant temporarily became invalid, as gold is about to fall into the triangle.
This unreliable pattern proved to be deceiving again.
Only a stabilization above $1,984, followed by a break above $2,004, could make these bullish patterns available.
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