The support is provided by the 38.2 percent retracement of the uptrend from $1,180.34 to $1,346.73. The metal has been trying to stabilize around this support. Unfortunately, it is not very clear how long the metal could remain sideways before falling again.
The best bet will be one or two days, when the current consolidation extends to a channel line. It is also not very clear if a bounce could occur. Most likely, such a bounce will be limited to $1,297, the channel line resistance.
A fall below the March 5 low of $1,280.70 may confirm a break below $1,283 and a target at $1,264. On the long-term daily chart, gold is falling within a huge wedge developing from the Dec. 4, 2015 low of $1,057.75.
The pattern could have indeed completed, as suggested by its five-wave structure. It looks like a bearish continuation pattern and indicates a target at the Aug. 16, 2018 low of $1,159.96.
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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.