Spot gold TVC:GOLD may retest a support at $4,120 per ounce, a break below which could open the way towards $4,053-$4,087 range.
The metal failed three times to break a resistance at $4,195. The failures suggest the formation of a top, neckline of which is at $4,120.
A break above $4,195 would confirm the continuation of the uptrend towards $4,283-$4,317 range. On the daily chart, the market is approaching a resistance at $4,229, the 100% projection level of a downtrend from $5,418.
Strengthening the resistance is another at $4,233, the 138.2% projection level of a fall from $4,772. Selling pressure appears to be mounting.
Signals on the hourly chart indicate that bulls are not ready to test these resistances. A correction is highly likely.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.
** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.