SINGAPORE: Spot gold may fall towards $1,837, following its failure to break a resistance at $1,867 per ounce.
The rise from the May 16 low of $1,786.60 has been well controlled by a set of retracements on the fall from $1,998.10 to $1,786.60.
The rise from $1,807.10 could be broken down into five small waves.
The structure signals a completion of a bigger wave (3) or wave c.
The small wave 4 ended around $1,837, which works as a target.
Immediate resistance is at $1,856, a break above which could lead to a gain into $1,867-$1,875 range.
Spot gold may test resistance at $1,867
On the daily chart, the metal has climbed above a lower channel.
A duplicated upper channel suggests a target of $1,892. However, gold failed to break the nearest resistance at $1,867.
The failure triggered a pullback towards the lower channel.
The pullback is expected to end around $1,837, from which, the rise may resume towards $1,892.
Comments
Comments are closed.