TECHNICAL ANALYSIS BY NSFX 02.11.2014
Gold broke the static support at 1182 and closed the trading week below that level. A bearish wave is likely to occur and the commodity might test 1100 and then 1060. However 1000 would be the most relevent key area to test the weakness of the shiny metal. A pull back to 1182 is also a scenario with high probability. Above this level the technical price pattern would be considered a fake breakout and many shorts positions will be covered and price might spike to 1238 and then 1258. The Average True Range (ATR) is below its historical average thus traders might expect an increase of intraday volatility.