Gold (18.10.2013) traded lower as per our last report dated 08.10.2013 & reach to $1280 mark , even lower.
Now gold is trading around $1320 & as we can see on charts gold bounced from $1250 area , however this area was not a very good support. Anyway the bounce was good enough to eat all SL made above $1300 mark & it moved to $1327. This area from $1320-1330 represent a lot of major resistance, ( 1) 38.2% feb correction level of last long descending wave (this could be 1st wave of a new downside Elliott wave) , (2) 61.8% of the recent downside wave & (3) parallel resistance around $1330. This combination provides us a better opportunity to go for short rather than selling.
On the fundamental side, US is back on track ( for a short time frame whatever) & avoided the default somehow. However debit issue is still alive but the deadlock timeline has been increased.
Based on above studies, we will prefer to sell gold for downside targets around $1300 & then may be $1280 . Any day close above $1330 area will change the direction.
Related Readings and Observations
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