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.
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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.
