SINGAPORE: Spot gold may break a support at $1,330 per ounce and fall to the next support at $1,323, as suggested by its wave pattern and a Fibonacci ratio analysis.
These supports are identified respectively as the 50 percent and the 61.8 percent retracements on the uptrend from $1,302.61 to $1,356.66.
The three-wave structure of the rise from the March 29 low of $1,321.21, along with the deep fall from the April 4 high of $1,348.06, indicates the downtrend from $1,356.66 has not completed.
The metal is riding on a big wave C from $1,348.06, which is capable of travelling into $1,313-$1,326 range, formed by the 100 percent and the 61.8 percent projection levels of this wave.
A bounce may be limited to $1,336.
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.
Source: Brecorder
