SINGAPORE: Spot gold may test a support at $1,719 per ounce, a break below which could cause a fall into $1,677.77-$1,697 range.
The fall on April 9 is so deep that it suggests a completion of the bounce from $1,677.70.
A presumed double-bottom pattern forming around $1,678 looks doubtful. The rise from $1,677.70 could be a part of a flat pattern.
A flat would mean a drop towards $1,677.70.
Given that gold has broken a support at $1,744, it is likely to fall to $1,719.
A break above $1,744 may lead to a gain to $1,758.
A further gain could confirm a double-bottom, and a bullish target of $1,852 will be established accordingly.
On the daily chart, it looks like gold is pulling back towards a falling trendline. The pullback may extend to $1,693. Chances are the metal may drop more to $1,651 once it reaches $1,693.
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.