Spot gold may test resistance at $1,789
- These false breaks give it away that bears are bluffing around this level
SINGAPORE: Spot gold may test a resistance at $1,789 per ounce, a break above which could lead to a gain to $1,813.
A five-wave cycle from $1,902.70 may have completed at Tuesday's low of $1,749.20, which is near $1,744 - its 261.8% projection level, and close to $1,769, the 61.8% retracement of the uptrend from $1,677.61 to $1,916.40.
The downtrend from $1,916.40 could have reversed. Another retracement analysis on the trend confirms the reversal, as the current bounce observes closely the 14% level.
Support is at $1,760.90, a break below which may cause a shallow drop to $1,744. On the daily chart, there is another false break below $1,771, in addition to the one on June 18.
These false breaks give it away that bears are bluffing around this level.
No information in this analysis should be considered as being business, financial or legal advice. 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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