February gold futures has been trading around a $1685 to $1690 three day value range begining Thursday afternoon and continued on through the Monday holiday trading session.
Additionally, the last two trading days are "inside days", where the range of the day was within the previous days range. "Inside days" are a form of balance. When a volitile market such as gold is contained within a tight range for several days, a significant move could follow the break from balance. It is possible that the market continues to rotate around this three day value range for the next day or so, but it is necessary to be prepared for a break from this balance.
The market has found support at the $1685 level over the last three days. If the market gains acceptance below that $1685 level, it may trade lower back into Thursdays morning balance range of $1670 to $1674.
If the market begins to gain acceptance above the three day value range, the first reference to watch for is Thursday's $1687.80 high. The market may find resistance at this level the first time up. If the market gains acceptance above Thursday's 16878 high, it may test the $1703.70 to $1708.50 gap.