SINGAPORE: Spot gold may test a support at $1,840 per ounce, a break below which could cause a fall to $1,818.

The rise from the Jan. 18 low of $1,809.90 may have been driven by a wave B, the second wave of a three-wave cycle from $1,959.01.

This wave is expected to be reversed by a downward wave C which started at $1,875.26. A projection analysis on the wave C reveals the support at $1,840, the 23.6% level, a break below which could confirm the progress of this wave towards $1,818.

A break above $1,875 could signal an extension of the uptrend towards $1,902, the 61.8% retracement of the downtrend from $1,959.01 to $1,809.90.

Signals are a bit mixed on the daily chart as gold is stuck in a neutral range of $1,841-$1,886,formed by the 38.2% and the 23.6% projection levels of a downward wave C from $1,959.01.

Wave pattern suggests a downside bias.

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.