SINGAPORE: Spot gold may rise to $1,862 per ounce, as it has cleared a resistance at $1,839.

The first leg of the fall from the Jan. 6 high of $1,959.01 has completed around a support at $1,811, the 76.4% retracement on the uptrend from $1,764.29 to $1,959.01.

The completion has been confirmed by the five-wave structure of the fall. Following its surget above $1,839, the metal seems to be rising towards $1,862.

Another retracement analysis on the fall from $1,959.01 to $1,809.90 reveals a support at $1,832, the 14.6% level, a break below may cause a fall to $1,820.

On the daily chart, gold has found a support at $1,805, the 50% projection level of a wave C from $1,959.01. The two hammers forming on Jan. 11 and Jan. 18 are convincing signals that the drop has become exhausted, and a bounce is due.

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