SINGAPORE: Spot gold may revisit its Feb. 25 low of $1,882.75 per ounce, as a bounce triggered by the support at $1,879 may have completed around a resistance at $1,928.
A wave (c) from $1,779.20 may have completed at the Feb. 24 high of $1,973.96, as strongly suggested by the following deep drop.
The bounce from $1,882.75 is classified as a reaction to the deep drop which could have developed too fast. The small gap forming on Monday looks like a common type, which is expected to be covered in one or two days.
Spot gold may keep rising towards $1,856
A break above $1,928 could lead to a gain into $1,940-$1,954 range. On the daily chart, the long-shadowed shooting star on Feb. 24 confirms a completion of the uptrend from $1,676.10.
The metal has been trying to penetrate into the upper shadow of the shooting star, but this is believe to be a hopeless attempt.
A strong resistance at $1,921 still works effectively on any further gain.
A break above $1,927 (close to $1,928 on hourly chart), may lead to a gain into $1,945-$1,962 range.
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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