SINGAPORE: Spot gold may break a support at $1,812 per ounce, and fall to $1,801, as suggested by a rising channel and ratio analysis.
The deep fall on Wednesday confirmed the completion of a corrective wave cycle from $1,753.30. The rising channel suggests a further fall to $1,801, around which the uptrend may resume.
A retracement analysis on the rise from $1,753.30 to $1,853.67 reveals a target zone of $1,792-$1,803, which engulfs $1,801 level.
A break above $1,821 may lead to a gain to $1,831.
Spot gold targets $1,860-$1,872 range
On the daily chart, a retracement analysis on the uptrend from $1,684.37 marks a similar target of $1,803, as gold has broken a support at $1,831.
The uptrend is deemed intact within a bigger rising channel. It is riding on a wave C, which may travel far above $1,877.
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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