TECHNICALS — Spot gold may rise into $4,198 — $4,218 range

For more technical analyses, click TECH/C SINGAPORE, Oct 16 (Reuters) — Spot gold may break a resistance at $4,183 per ounce and rise into the $4,198-$4,218 range. The metal has broken a resistance at $4,162, the 61.8% retracement of the downtrend from $4,218 to $4,073. The break increases the metal's chance to revisit the high of $4,218. The pattern between October 7 and October 14 looks like either a flat pattern or a double-bottom. Both suggest further gains toward $4,218. From $4,073, the rise appears to be forming a flag-like pattern, as the consolidation since the previous trading session has been sloping upward. A break below $4,162, now a support, may trigger a fall into the $4,128-$4,145 range. On the daily chart, a bullish engulfing pattern formed between October 14 and October 15, which, together with the bullish divergence on the RSI, strongly suggests a reversal of the downtrend from $4,696. Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on the Workspace platform, a London Stock Exchange product. * No information in this analysis should be considered as being business,