Gold Analysis, 5 November,2013 Trend is sideways to bounce
Gold Analysis presented by us worked fine but price of gold remained in a limited range. As we discussed yesterday that intraday trend supports bears.
Price of gold founded good support near 1311 areas yesterday and may rebound to $1,336. We went short at 1321 yesterday with a target of 1306 and 1296 respectively. We cleared at 1315.30 as chances of a break below the support were reduced.
In case of break below 1311, 50 % Fibonacci retracement on the rise from the Oct. 15 low of 1251.66 to the Oct. 28 high of $1,361.60 stands at 1306 which may provide enough potential to rebound to 1336. Apparently chances of a break below the support has been significantly reduced. Successful break below 1304 may confirm the continuation of the downtrend towards the 61.8 percent retracement at 1294.