Gold currently seems forming double bottom that will be confirmed tomorrow Friday October 31st, 2014 or next week on Monday November 3rd, 2014. The decline to the black lines will form a high probable trade setup as this area looks good buying zone off which the rally to the first target line seems very plausible.
However, the price action with respect to the black lines will be a key determinant of entry decision since there is no actual volume in spot market which can be used as a filtering tool. Let's watch how the trade setup unfold tomorrow which is projected to be the reversal day for multi days up move.
Gold has penetrated the black lines down to 1161.00 level. I am looking for the price to close above 1182.05 to confirm weekly bottom and the deadline for this projection should be next week on Monday November 3rd, 2014. Now the key level to the down side will be 1161.26. Breakout and close below this line is an indication for further drop in gold price towards 1146.17 and 1135.22.
Next week Monday should be the turning day to the upside. Will monitor price action and advise the trade entry next week.
AK_2014
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Just to add up, someone can benefit from the swift decline to the downside target on lower time frames by going short and take profit immediately. All it depends on your strategy.