SINGAPORE: Spot gold may stabilize around a support at $2,039 per ounce and retest a resistance at $2,059. The consolidation within a wedge is ending.
The basic assumption is that a wave 4 is unfolding, which may end around $2,039.
This wave would be reversed by a wave 5.
Even if the current wave count turns out to be only one of the two possibilities, the metal may still approach $2,074, to form a top before reversing the trend.
A break below $2,039 could open the way towards $2,024-$2,033 range.
On the daily chart, the metal failed to break a resistance at $2,072.50 again.
Will this failure be a strategic retreat of bulls before launching a heavier attack on this barrier? The answer would probably be “No.”
Following this failure, a big triple-top is likely to form around $2,073.
The longer the metal stays below this level, the more likely it falls towards the range of $1,963-$1,984.
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