The support is provided by the 23.6 percent level of an uptrend from $1,292.50. The uptrend seems to be consisting of many small corrective waves. Such a structure suggests the trend could be a part of the correction from the March 13 high of $1,311.08.
Three waves make up the correction. They are likely to form a flat pattern. The third wave labelled c is capable of travelling to $1,292.50. A break above $1,311 could confirm the extension of the uptrend towards $1,323.
On the daily chart, gold is struggling around a resistance at $1,307, the 23.6 percent retracement on the uptrend from $1,180.34 to $1,346.73.
The three white candlesticks on March 15, March 18 and March 19 look like a falling three method, which will be followed by a deep drop similar to the one on March 14.
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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.