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Spot gold may test a support at $1,801 per ounce, a break below which could cause a fall to $1,783.
The metal is riding on a wave C from $1,875.26, which may travel to $1,726, its 100% projection level. A bearish pennant points at $1,726 as well.
The support at $1,783 triggered a bounce which seems to have ended around a resistance at $1,818. The downtrend may have resumed.
A break above $1,818 could lead to a gain to $1,840. On the daily chart, gold has deeply pierced below a support at $1,805,the 50% projection level of a downward wave C from $1,959.01.
The bounce on Feb. 5 is classified as a pullback towards$1,805. Eventually, the metal may break this level and fall to$1,769.
** 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 analysis.)
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