SINGAPORE: Spot gold may revisit its June 5 low of $1,937.89 per ounce, as it failed twice to break a resistance at $1,970. The failure marked the completion of a bounce from this low.
The whole consolidation from the May 30 low of $1,931.76 has been shaped into a wedge, which looks like a bearish continuation pattern.
The wedge will be confirmed when gold breaks $1,937.
A break above $1,964 could lead to a gain into $1,970-$1,977 range.
On the daily chart, gold is still consolidating around a trendline.
The consolidation may end very soon, as the metal is expected to eventually drop to $1,809, the bottom of the wave D.
The break below the trendline will be confirmed when gold falls below $1,939.
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