I like how the Fibonacci retracement
and extension levels match up around the whole number giving gold
a 100 point range. My original position was entered at 1316ish and subsequently sold at 1352ish. Now I'm looking for the next trade. I see gold
in the middle of a range, ultimately, I can see the trend shifting, but I usually don't trade betting on a trend change, I wait for confirmation and then buy the next dip/rip. So until I see otherwise, I think the 1400
area will act as resistance (especially if gold
continues at the rate it's been going to get there. Also, I think that 1300 will act as support because those who missed the breakout over it, will get back in at the round number thinking the bull
run is going to continue.
The reason I like the 2/3 back into the range for the target is because one, it's fib levels from the extension, and two for some reason it just works that way and the pattern tends to morph into some sort of triangle consolidation.