SINGAPORE: Spot gold is poised to break a support at $1,660 per ounce and fall towards $1,642, as the bounce triggered by this support seems to have completed.
The bounce has been shaped into a triangle, which itself is a bearish continuation pattern.
It makes up a more bearish pennant together with the preceding fall.
The triangle suggests a target of $1,642 while the pennant a much lower target of $1,614.
A break above $1,674 may lead to a gain to $1,689.
On the daily chart, the downtrend remains steady within a falling channel, which suggests a target of $1,536.
Spot gold still targets $1,642
Wave pattern indicates the progress of a wave c, which could at least travel to $1,611.
The bounce triggered by the support at $1,657 looks weak.
It symbolizes a prevailing bearish sentiment. The support could be broken on either Thursday or Friday.
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