Spot gold may fall to $1,818
- A downward wave C could have resumed, which is expected to travel below $1,783. A break above $1,853 could lead to a gain to $1,875.
SINGAPORE: Spot gold may fall to $1,818, following its failure to break a resistance at $1,853.
The failure marks the end of a bounce from the Feb. 4 low of $1,784.76. Strategically, the target of $1,818 will be confirmed when gold breaks $1,831.60.
A downward wave C could have resumed, which is expected to travel below $1,783. A break above $1,853 could lead to a gain to $1,875.
On the daily chart, gold was unable to break a resistance at $1,841, the 38.2% projection level of a downward wave C from $1,959.01.
The white candlesticks from Feb. 5 became smaller and smaller. It is hard for the metal to overcome the barrier at $1,841, due to the diminishing bullish momentum. Most likely, it will fall towards $1,805.
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.
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