The metal tested the upper trendline which descended from the Sept. 6 high of $1,920.30, but failed to break above it, increasing a chance for a bounce back to the lower trendline which rose from the Aug. 25 low of $1,702.44.

The metal needs to stand above $1,811 to confirm a high-low bottom with a target at $1,839.49 -- an hourly chart high touched on Sept 14, while a fall below $1,761.94 will open the way to $1,730.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2011