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. 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.

(Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.)

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.