Gold (13.01.2014) reverse from very potential support area of $1208-1180 & now trading between minor support & resistance area which will decide the future direction for shot term.
Now gold is trading around $1245 & as we can see on chart it is reaching to the minor parallel resistance area at $1254. we have witness a major bull bear fight in this $1217 – $1254 range earlier & it may be more interesting this time. However the upside move was well supported by an triangle breakout as shown in chart. At the same time RSI above 50 mark showing positivity.
On fundamental side, last week NFP data came much weaker than expectation. This might force FOMC to rethink before another tapering on coming 29jan 2014 meeting.
Based on above studies, we will prefer to buy gold on a volume breakout above $1254 & we will be looking at $1270 as our 1st target & then probably for $1293. A day close below $1217 will force us to reanalyze the charts.