SINGAPORE: Spot gold may break a support at $1,756 per ounce, and fall towards $1,728-$1,379 range, as suggested by its wave pattern and a projection analysis.
A three-wave cycle from the July 21 low of $1,680.25 has completed.
It is expected to be further reversed.
The consolidation above $1,756 may be shaped into a flat pattern, to end around $1,773.
The uptrend may resume, if gold could break $1,773, as the trend could consist of five waves as well.
Spot gold may retest support at $1,756
The break would open the way towards $1,784-$1,801 range.
On the daily chart, the shooting star on Tuesday was followed by a white spinning top. Such a combination of the candlesticks suggests a cautiously bullish market sentiment.
The downside could be well limited to $1,737.
A break above $1,772 may lead to a gain to $1,800, a resistance established by a falling trendline.
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