Spot gold to creep into $1,795-$1,798 range, sustainable gain doubtful
SINGAPORE: Spot gold may edge up into a range of $1,795-$1,798 per ounce, driven by a wave e.
The recovery of the price from the Oct. 18 low of $1,759 turned out to be stronger than expected. Chances are the uptrend from $1,720.49 has extended.
The trend consists of five waves.
The wave e is unfolding towards the target zone. The zigzagging mode of the current rise suggests the formation of flat from the Oct. 14 high of $1,800.12.
Based on this suggestion, what appears to be a wave e may turn out to be a wave b, which will be reversed by a downward wave c.
A break below $1,776 could cause a fall into $1,757-$1,764 range. On the daily chart, gold is approaching a falling trendline again.
A break above the line will be much undermined by a resistance at $1,800. Only when the metal stands firm above this level, could a bullish target zone of $1,828-$1,862 be established.
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.
Comments
Comments are closed.